Title: A bill to establish the Paycheck Protection Program Second Draw Loan, and for other purposes.
Policy area: Commerce

Summary:
Continuing the Paycheck Protection Program Act
This bill establishes funding for, expands, and provides additional economic assistance to small businesses in response to COVID-19.
Specifically, the Small Business Administration is authorized to provide second draw loans of up to $2 million under the Paycheck Protection Program. A recipient shall be eligible for forgiveness of a second draw loan in the same manner as an initial paycheck protection loan.
Further the bill modifies the Paycheck Protection Program by, among other things, (1) expanding forgivable expenses, (2) allowing borrowers to select an eight-week period to use their paycheck protection loan, (3) simplifying the forgiveness application for smaller loans, (4) expanding eligibility to certain chambers of commerce and destination marketing organizations, and (5) establishing a specific loan calculation for farmers and ranchers.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4773 Placed on Calendar Senate (PCS)]

<DOC>





                                                       Calendar No. 562
116th CONGRESS
  2d Session
                                S. 4773

To establish the Paycheck Protection Program Second Draw Loan, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 30 (legislative day, September 29), 2020

Ms. Collins (for herself and Mr. Rubio) introduced the following bill; 
                     which was read the first time

                            October 1, 2020

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
To establish the Paycheck Protection Program Second Draw 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 ``Continuing the Paycheck Protection 
Program Act''.

SEC. 2. SMALL BUSINESS RECOVERY.

    (a) Definitions.--In this section:
            (1) Administration; administrator.--The terms 
        ``Administration'' and ``Administrator'' mean the Small 
        Business Administration and the Administrator thereof, 
        respectively.
            (2) Small business concern.--The term ``small business 
        concern'' has the meaning given the term in section 3 of the 
        Small Business Act (15 U.S.C. 632).
    (b) Emergency Rulemaking Authority.-- Not later than 30 days after 
the date of enactment of this Act, the Administrator shall issue 
regulations to carry out this section and the amendments made by this 
section without regard to the notice requirements under section 553(b) 
of title 5, United States Code.
    (c) Additional Eligible Expenses.--
            (1) Allowable use of ppp loan.--Section 7(a)(36)(F)(i) of 
        the Small Business Act (15 U.S.C. 636(a)(36)(F)(i)) is 
        amended--
                    (A) in subclause (VI), by striking ``and'' at the 
                end;
                    (B) in subclause (VII), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                                    ``(VIII) covered operations 
                                expenditures, as defined in section 
                                1106(a) of the CARES Act (15 U.S.C. 
                                9005(a));
                                    ``(IX) covered property damage 
                                costs, as defined in such section 
                                1106(a);
                                    ``(X) covered supplier costs, as 
                                defined in such section 1106(a); and
                                    ``(XI) covered worker protection 
                                expenditures, as defined in such 
                                section 1106(a).''.
            (2) Loan forgiveness.--Section 1106 of the CARES Act (15 
        U.S.C. 9005) is amended--
                    (A) in subsection (a)--
                            (i) by redesignating paragraphs (6), (7), 
                        and (8) as paragraphs (10), (11), and (12), 
                        respectively;
                            (ii) by redesignating paragraph (5) as 
                        paragraph (8);
                            (iii) by redesignating paragraph (4) as 
                        paragraph (6);
                            (iv) by redesignating paragraph (3) as 
                        paragraph (4);
                            (v) by inserting after paragraph (2) the 
                        following:
            ``(3) the term `covered operations expenditure' means a 
        payment for any business software or cloud computing service 
        that facilitates business operations, product or service 
        delivery, the processing, payment, or tracking of payroll 
        expenses, human resources, sales and billing functions, or 
        accounting or tracking of supplies, inventory, records and 
        expenses;'';
                            (vi) by inserting after paragraph (4), as 
                        so redesignated, the following:
            ``(5) the term `covered property damage cost' means a cost 
        related to property damage and vandalism or looting due to 
        public disturbances that occurred during 2020 that was not 
        covered by insurance or other compensation;'';
                            (vii) by inserting after paragraph (6), as 
                        so redesignated, the following:
            ``(5) the term `covered supplier cost' means an expenditure 
        made by an entity to a supplier of goods pursuant to a 
        contract, order, or purchase order in effect before October 1, 
        2020 for the supply of goods that are essential to the 
        operations of the entity at the time at which the expenditure 
        is made;'';
                            (viii) by inserting after paragraph (8), as 
                        so redesignated, the following:
            ``(9) the term `covered worker protection expenditure'--
                    ``(A) means an operating or a capital expenditure 
                that is required to facilitate the adaptation of the 
                business activities of an entity to comply with 
                requirements established or guidance issued by the 
                Department of Health and Human Services, the Centers 
                for Disease Control, or the Occupational Safety and 
                Health Administration during the period beginning on 
                March 1, 2020 and ending the date on which the national 
                emergency declared by the President under the National 
                Emergencies Act (50 U.S.C. 1601 et seq.) with respect 
                to the Coronavirus Disease 2019 (COVID-19) expires 
                related to the maintenance of standards for sanitation, 
                social distancing, or any other worker or customer 
                safety requirement related to COVID-19;
                    ``(B) may include--
                            ``(i) the purchase, maintenance, or 
                        renovation of assets that create or expand--
                                    ``(I) a drive-through window 
                                facility;
                                    ``(II) an indoor, outdoor, or 
                                combined air or air pressure 
                                ventilation or filtration system;
                                    ``(III) a physical barrier such as 
                                a sneeze guard;
                                    ``(IV) an indoor, outdoor, or 
                                combined 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 Administrator in 
                                consultation with the Secretary of 
                                Health and Human Services and the 
                                Secretary of Labor; and
                            ``(ii) 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 
                                protective 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 property or 
                intangible property;''; and
                            (ix) in paragraph (11), as so 
                        redesignated--
                                    (I) in subparagraph (C), by 
                                striking ``and'' at the end;
                                    (II) in subparagraph (D), by 
                                striking ``and'' at the end; and
                                    (III) by adding at the end the 
                                following:
                    ``(E) covered operations expenditures;
                    ``(F) covered property damage costs;
                    ``(G) covered supplier costs; and
                    ``(H) covered worker protection expenditures; 
                and'';
                    (B) in subsection (b), by adding at the end the 
                following:
            ``(5) Any covered operations expenditure.
            ``(6) Any covered property damage cost.
            ``(7) Any covered supplier cost.
            ``(8) Any covered worker protection expenditure.'';
                    (C) in subsection (d)(8), by inserting ``any 
                payment on any covered operations expenditure, any 
                payment on any covered property damage cost, any 
                payment on any covered supplier cost, any payment on 
                any covered worker protection expenditure,'' after 
                ``rent obligation,''; and
                    (D) in subsection (e)--
                            (i) in paragraph (2), by inserting 
                        ``payments on covered operations expenditures, 
                        payments on covered property damage costs, 
                        payments on covered supplier costs, payments on 
                        covered worker protection expenditures,'' after 
                        ``lease obligations,''; and
                            (ii) in paragraph (3)(B), by inserting 
                        ``make payments on covered operations 
                        expenditures, make payments on covered property 
                        damage costs, make payments on covered supplier 
                        costs, make payments on covered worker 
                        protection expenditures,'' after ``rent 
                        obligation,''.
    (d) Lender Safe Harbor.--Subsection (h) of section 1106 of the 
CARES Act (15 U.S.C. 9005) is amended to read as follows:
    ``(h) Hold Harmless.--
            ``(1) In general.--A lender may rely on any certification 
        or documentation submitted by an applicant 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 documentation described in 
        paragraph (1)--
                    ``(A) an enforcement action may not be taken 
                against the lender acting in good faith relating 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 origination or 
                forgiveness of a covered loan based on such 
                reliance.''.
    (e) Selection of Covered Period for Forgiveness.--Section 1106 of 
the CARES Act (15 U.S.C. 9005) is amended--
            (1) by amending paragraph (4) of subsection (a), as so 
        redesignated by subsection (c) of this section, to read as 
        follows:
            ``(4) 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 the date that is 24 weeks 
                        after such date of origination;''; and
            (2) by striking subsection (l).
    (f) Simplified Application.--Section 1106 of the CARES Act (15 
U.S.C. 9005), as amended by subsection (e) of this section, is 
amended--
            (1) in subsection (e), in the matter preceding paragraph 
        (1), by striking ``An eligible'' and inserting ``Except as 
        provided in subsection (l), an eligible'';
            (2) in subsection (f), by inserting ``or the information 
        required under subsection (l), as applicable'' after 
        ``subsection (e)''; and
            (3) by adding at the end the following:
    ``(l) Simplified Application.--
            ``(1) Covered loans under $150,000.--
                    ``(A) In general.--Notwithstanding subsection (e), 
                with respect to a covered loan made to an eligible 
                recipient that is not more than $150,000, the covered 
                loan amount shall be forgiven under this section if the 
                eligible recipient--
                            ``(i) signs and 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 the 
                        Continuing the Paycheck Protection Program Act, 
                        that--
                                    ``(I) reports the amount of the 
                                covered loan amount spent by the 
                                eligible recipient--
                                            ``(aa) on payroll costs; 
                                        and
                                            ``(bb) on the sum of--

                                                    ``(AA) payments of 
                                                interest on any covered 
                                                mortgage obligation 
                                                (which shall not 
                                                include any prepayment 
                                                of or payment of 
                                                principal on a covered 
                                                mortgage obligation);

                                                    ``(BB) payments on 
                                                any covered rent 
                                                obligation;

                                                    ``(CC) covered 
                                                utility payments;

                                                    ``(DD) covered 
                                                operations 
                                                expenditures;

                                                    ``(EE) covered 
                                                property damage costs;

                                                    ``(FF) covered 
                                                supplier costs; and

                                                    ``(GG) covered 
                                                worker protection 
                                                expenditures; and

                                    ``(II) attests that the eligible 
                                recipient made a good faith effort to 
                                comply with the requirements under 
                                section 7(a)(36) of the Small Business 
                                Act (15 U.S.C. 636(a)(36)); and
                            ``(ii) retains records relevant to the form 
                        that prove compliance with those requirements--
                                    ``(I) with respect to employment 
                                records, for the 4-year period 
                                following submission of the form; and
                                    ``(II) with respect to other 
                                records, for the 3-year period 
                                following submission of the form.
                    ``(B) Demographic information.--An eligible 
                recipient of a covered loan described in subparagraph 
                (A) may complete and submit any form related to 
                borrower demographic information.
                    ``(C) Audit.--The Administrator may--
                            ``(i) review and audit covered loans 
                        described in subparagraph (A); and
                            ``(ii) in the case of fraud, ineligibility, 
                        or other material noncompliance with applicable 
                        loan or loan forgiveness requirements, modify--
                                    ``(I) the amount of a covered loan 
                                described in subparagraph (A); or
                                    ``(II) the loan forgiveness amount 
                                with respect to a covered loan 
                                described in subparagraph (A).
            ``(2) Covered loans between $150,000 and $2,000,000.--
                    ``(A) In general.--Notwithstanding subsection (e), 
                with respect to a covered loan made to an eligible 
                recipient that is more than $150,000 and not more than 
                $2,000,000--
                            ``(i) the eligible recipient seeking loan 
                        forgiveness under this section--
                                    ``(I) is not required to submit the 
                                supporting documentation described in 
                                paragraph (1) or (2) of subsection (e) 
                                or the certification described in 
                                subsection (e)(3)(A);
                                    ``(II) shall retain--
                                            ``(aa) all employment 
                                        records relevant to the 
                                        application for loan 
                                        forgiveness for the 4-year 
                                        period following submission of 
                                        the application; and
                                            ``(bb) all other supporting 
                                        documentation relevant to the 
                                        application for loan 
                                        forgiveness for the 3-year 
                                        period following submission of 
                                        the application; and
                                    ``(III) may complete and submit any 
                                form related to borrower demographic 
                                information;
                            ``(ii) review by the lender of an 
                        application submitted by the eligible recipient 
                        for loan forgiveness under this section shall 
                        be limited to whether the lender received a 
                        complete application, with all fields 
                        completed, initialed, or signed, as applicable; 
                        and
                            ``(iii) the lender shall--
                                    ``(I) accept the application 
                                submitted by the eligible recipient for 
                                loan forgiveness under this section; 
                                and
                                    ``(II) submit the application to 
                                the Administrator.
                    ``(B) Audit.--The Administrator may--
                            ``(i) review and audit covered loans 
                        described in subparagraph (A); and
                            ``(ii) in the case of fraud, ineligibility, 
                        or other material noncompliance with applicable 
                        loan or loan forgiveness requirements, modify--
                                    ``(I) the amount of a covered loan 
                                described in subparagraph (A); or
                                    ``(II) the loan forgiveness amount 
                                with respect to a covered loan 
                                described in subparagraph (A).
            ``(3) Audit plan.--
                    ``(A) In general.--Not later than 30 days after the 
                date of enactment of the Continuing the Paycheck 
                Protection Program Act, the Administrator shall submit 
                to the Committee on Small Business and Entrepreneurship 
                of the Senate and the Committee on Small Business of 
                the House of Representatives an audit plan that 
                details--
                            ``(i) the policies and procedures of the 
                        Administrator for conducting reviews and audits 
                        of covered loans; and
                            ``(ii) the metrics that the Administrator 
                        shall use to determine which covered loans will 
                        be audited for each category of covered loans 
                        described in paragraphs (1) and (2).
                    ``(B) Reports.--Not later than 30 days after the 
                date on which the Administrator submits the audit plan 
                required under subparagraph (A), and each month 
                thereafter, the Administrator shall submit to the 
                Committee on Small Business and Entrepreneurship of the 
                Senate and the Committee on Small Business of the House 
                of Representatives a report on the review and audit 
                activities of the Administrator under this subsection, 
                which shall include--
                            ``(i) the number of active reviews and 
                        audits;
                            ``(ii) the number of reviews and audits 
                        that have been ongoing for more than 60 days; 
                        and
                            ``(iii) any substantial changes made to the 
                        audit plan submitted under subparagraph (A).''.
    (g) Group Insurance Payments as Payroll Costs.--Section 
7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Business Act (15 U.S.C. 
636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by inserting ``and other 
group insurance'' before ``benefits''.
    (h) Paycheck Protection Program Second Draw Loans.--Section 7(a) of 
the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the 
end the following:
            ``(37) Paycheck protection program second draw loans.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the terms `community financial 
                        institutions', `credit union', `eligible self-
                        employed individual', `insured depository 
                        institution', `nonprofit organization', 
                        `payroll costs', `seasonal employer', and 
                        `veterans organization' have the meanings given 
                        those terms in paragraph (36), except that 
                        `eligible entity' shall be substituted for 
                        `eligible recipient' each place it appears in 
                        the definitions of those terms;
                            ``(ii) the term `covered loan' means a loan 
                        made under this paragraph;
                            ``(iii) the terms `covered mortgage 
                        obligation', `covered operating expenditure', 
                        `covered property damage cost', `covered rent 
                        obligation', `covered supplier cost', `covered 
                        utility payment', and `covered worker 
                        protection expenditure' have the meanings given 
                        those terms in section 1106(a) of the CARES Act 
                        (15 U.S.C. 9005(a));
                            ``(iv) the term `covered period' means the 
                        period beginning on the date of the origination 
                        of a covered loan and ending on December 31, 
                        2020;
                            ``(v) the term `eligible entity'--
                                    ``(I) means any business concern, 
                                nonprofit organization, veterans 
                                organization, Tribal business concern, 
                                eligible self-employed individual, sole 
                                proprietor, independent contractor, or 
                                small agricultural cooperative that--
                                            ``(aa)(AA) with respect to 
                                        a business concern, would 
                                        qualify as a small business 
                                        concern by the annual receipts 
                                        size standard (if applicable) 
                                        established by section 121.201 
                                        of title 13, Code of Federal 
                                        Regulations, or any successor 
                                        regulation; or
                                            ``(BB) if the entity does 
                                        not qualify as a small business 
                                        concern, meets the alternative 
                                        size standard established under 
                                        section 3(a)(5);
                                            ``(bb) employs not more 
                                        than 300 employees; and
                                            ``(cc)(AA) except as 
                                        provided in subitems (BB), 
                                        (CC), and (DD), had gross 
                                        receipts during the first, 
                                        second, or third quarter in 
                                        2020 that demonstrate not less 
                                        than a 35 percent reduction 
                                        from the gross receipts of the 
                                        entity during the same quarter 
                                        in 2019;
                                            ``(BB) if the entity was 
                                        not in business during the 
                                        first or second quarter of 
                                        2019, but was in business 
                                        during the third and fourth 
                                        quarter of 2019, had gross 
                                        receipts during the first, 
                                        second, or third quarter of 
                                        2020 that demonstrate not less 
                                        than a 35 percent reduction 
                                        from the gross receipts of the 
                                        entity during the third or 
                                        fourth quarter of 2019;
                                            ``(CC) if the entity was 
                                        not in business during the 
                                        first, second, or third quarter 
                                        of 2019, but was in business 
                                        during the fourth quarter of 
                                        2019, had gross receipts during 
                                        the first, second, or third 
                                        quarter of 2020 that 
                                        demonstrate not less than a 35 
                                        percent reduction from the 
                                        gross receipts of the entity 
                                        during the fourth quarter of 
                                        2019; or
                                            ``(DD) if the entity was 
                                        not in business during 2019, 
                                        but was in operation on 
                                        February 15, 2020, had gross 
                                        receipts during the second or 
                                        third quarter of 2020 that 
                                        demonstrate not less than a 35 
                                        percent reduction from the 
                                        gross receipts of the entity 
                                        during the first quarter of 
                                        2020;
                                    ``(II) includes an organization 
                                described in subparagraph (D)(vii) of 
                                paragraph (36) that is eligible to 
                                receive a loan under that paragraph and 
                                that meets the requirements described 
                                in items (aa) and (cc) of subclause 
                                (I); and
                                    ``(III) does not include--
                                            ``(aa) an issuer, the 
                                        securities of which are listed 
                                        on an exchange registered a 
                                        national securities exchange 
                                        under section 6 of the 
                                        Securities Exchange Act of 1934 
                                        (15 U.S.C. 78f);
                                            ``(bb) any entity that--

                                                    ``(AA) is a type of 
                                                business concern 
                                                described in subsection 
                                                (b), (c), (d), (e), 
                                                (f), (h), (l) (m), (p), 
                                                (q), (r), or (s) of 
                                                section 120.110 of 
                                                title 13, Code of 
                                                Federal Regulations, or 
                                                any successor 
                                                regulation;

                                                    ``(BB) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(g) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in the interim 
                                                final rule of the 
                                                Administration entitled 
                                                `Business Loan Program 
                                                Temporary Changes; 
                                                Paycheck Protection 
                                                Program--Additional 
                                                Eligibility Criteria 
                                                and Requirements for 
                                                Certain Pledges of 
                                                Loans' (85 Fed. Reg. 
                                                21747 (April 20, 
                                                2020));

                                                    ``(CC) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(i) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except if the business 
                                                concern is an 
                                                organization described 
                                                in paragraph 
                                                (36)(D)(vii);

                                                    ``(DD) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(j) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in the interim 
                                                final rules of the 
                                                Administration entitled 
                                                `Business Loan Program 
                                                Temporary Changes; 
                                                Paycheck Protection 
                                                Program--Eligibility of 
                                                Certain Electric 
                                                Cooperatives' (85 Fed. 
                                                Reg. 29847 (May 19, 
                                                2020)) and `Business 
                                                Loan Program Temporary 
                                                Changes; Paycheck 
                                                Protection Program--
                                                Eligibility of Certain 
                                                Telephone Cooperatives' 
                                                (85 Fed. Reg. 35550 
                                                (June 11, 2020)) or any 
                                                other guidance or rule 
                                                issued or that may be 
                                                issued by the 
                                                Administrator;

                                                    ``(EE) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(n) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in the interim 
                                                final rule of the 
                                                Administration entitled 
                                                `Business Loan Program 
                                                Temporary Changes; 
                                                Paycheck Protection 
                                                Program--Additional 
                                                Eligibility Revisions 
                                                to First Interim Final 
                                                Rule' (85 Fed. Reg. 
                                                38301 (June 26, 2020)) 
                                                or any other guidance 
                                                or rule issued or that 
                                                may be issued by the 
                                                Administrator;

                                                    ``(FF) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(o) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in any 
                                                guidance or rule issued 
                                                or that may be issued 
                                                by the Administrator; 
                                                or

                                                    ``(GG) is an entity 
                                                that would be described 
                                                in the subsections 
                                                listed in subitems (AA) 
                                                through (FF) if the 
                                                entity were a business 
                                                concern; or

                                                    ``(HH) is assigned, 
                                                or was approved for a 
                                                loan under paragraph 
                                                (36) with, a North 
                                                American Industry 
                                                Classification System 
                                                code beginning with 52;

                                            ``(cc) any business concern 
                                        or entity primarily engaged in 
                                        political or lobbying 
                                        activities, which shall include 
                                        any entity that is organized 
                                        for research or for engaging in 
                                        advocacy in areas such as 
                                        public policy or political 
                                        strategy or otherwise describes 
                                        itself as a think tank in any 
                                        public documents;
                                            ``(dd) any business concern 
                                        or entity--

                                                    ``(AA) for which an 
                                                entity created in or 
                                                organized under the 
                                                laws of the People's 
                                                Republic of China or 
                                                the Special 
                                                Administrative Region 
                                                of Hong Kong, or that 
                                                has significant 
                                                operations in the 
                                                People's Republic of 
                                                China or the Special 
                                                Administrative Region 
                                                of Hong Kong, owns or 
                                                holds, directly or 
                                                indirectly, not less 
                                                than 20 percent of the 
                                                economic interest of 
                                                the business concern or 
                                                entity, including as 
                                                equity shares or a 
                                                capital or profit 
                                                interest in a limited 
                                                liability company or 
                                                partnership; or

                                                    ``(BB) that 
                                                retains, as a member of 
                                                the board of directors 
                                                of the business 
                                                concern, a person who 
                                                is a resident of the 
                                                People's Republic of 
                                                China; or

                                            ``(ee) any person required 
                                        to submit a registration 
                                        statement under section 2 of 
                                        the Foreign Agents Registration 
                                        Act of 1938 (22 U.S.C. 612);
                            ``(vi) the terms `exchange', `issuer', and 
                        `security' have the meanings given those terms 
                        in section 3(a) of the Securities Exchange Act 
                        of 1934 (15 U.S.C. 78c(a)); and
                            ``(vii) the term `Tribal business concern' 
                        means a Tribal business concern described in 
                        section 31(b)(2)(C).
                    ``(B) Loans.--Except as otherwise provided in this 
                paragraph, the Administrator may guarantee covered 
                loans to eligible entities under the same terms, 
                conditions, and processes as a loan made under 
                paragraph (36).
                    ``(C) Maximum loan amount.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, the maximum 
                        amount of a covered loan made to an eligible 
                        entity is the lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) at the election of 
                                        the eligible entity, the 
                                        average total monthly payment 
                                        for payroll costs incurred or 
                                        paid by the eligible entity 
                                        during--

                                                    ``(AA) the 1-year 
                                                period before the date 
                                                on which the loan is 
                                                made; or

                                                    ``(BB) calendar 
                                                year 2019; by

                                            ``(bb) 2.5; or
                                    ``(II) $2,000,000.
                            ``(ii) Seasonal employers.--The maximum 
                        amount of a covered loan made to an eligible 
                        entity that is a seasonal employer is the 
                        lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) at the election of 
                                        the eligible entity, the 
                                        average total monthly payments 
                                        for payroll costs incurred or 
                                        paid by the eligible entity--

                                                    ``(AA) for a 12-
                                                week period beginning 
                                                February 15, 2019 or 
                                                March 1, 2019 and 
                                                ending June 30, 2019; 
                                                or

                                                    ``(BB) for a 
                                                consecutive 12-week 
                                                period between May 1, 
                                                2019 and September 15, 
                                                2019; by

                                            ``(bb) 2.5; or
                                    ``(II) $2,000,000.
                            ``(iii) New entities.--The maximum amount 
                        of a covered loan made to an eligible entity 
                        that did not exist during the 1-year period 
                        preceding February 15, 2020 is the lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) the quotient 
                                        obtained by dividing--

                                                    ``(AA) the sum of 
                                                the total monthly 
                                                payments by the 
                                                eligible entity for 
                                                payroll costs paid or 
                                                incurred by the 
                                                eligible entity as of 
                                                the date on which the 
                                                eligible entity applies 
                                                for the covered loan; 
                                                by

                                                    ``(BB) the number 
                                                of months in which 
                                                those payroll costs 
                                                were paid or incurred; 
                                                by

                                            ``(bb) 2.5; or
                                    ``(II) $2,000,000.
                            ``(iv) Limit for multiple locations.--With 
                        respect to an eligible entity with more than 1 
                        physical location, the total amount of all 
                        covered loans shall be not more than 
                        $2,000,000.
                            ``(v) Loan number limitation.--An eligible 
                        entity may only receive 1 covered loan.
                            ``(vi) 90 day rule for maximum loan 
                        amount.--The maximum aggregate loan amount of 
                        loans guaranteed under this subsection that are 
                        approved for an eligible entity (including any 
                        affiliates) within 90 days of approval of 
                        another loan under this subsection for the 
                        eligible entity (including any affiliates) 
                        shall not exceed $10,000,000.
                    ``(D) Exception from certain certification 
                requirements.--An eligible entity applying for a 
                covered loan shall not be required to make the 
                certification described in subclause (III) or (IV) of 
                paragraph (36)(G)(i).
                    ``(E) Fee waiver.--With respect to a covered loan--
                            ``(i) in lieu of the fee otherwise 
                        applicable under paragraph (23)(A), the 
                        Administrator shall collect no fee; and
                            ``(ii) in lieu of the fee otherwise 
                        applicable under paragraph (18)(A), the 
                        Administrator shall collect no fee.
                    ``(F) Eligible churches and religious 
                organizations.--
                            ``(i) Sense of congress.--It is the sense 
                        of Congress that the interim final rule of the 
                        Administration entitled `Business Loan Program 
                        Temporary Changes; Paycheck Protection Program' 
                        (85 Fed. Reg. 20817 (April 15, 2020)) properly 
                        clarified the eligibility of churches and 
                        religious organizations for loans made under 
                        paragraph (36).
                            ``(ii) Applicability of prohibition.--The 
                        prohibition on eligibility established by 
                        section 120.110(k) of title 13, Code of Federal 
                        Regulations, or any successor regulation, shall 
                        not apply to a covered loan.
                    ``(G) Gross receipts for nonprofit and veterans 
                organizations.--For purposes of calculating gross 
                receipts under subparagraph (A)(v)(I)(cc) for an 
                eligible entity that is a nonprofit organization, a 
                veterans organization, or an organization described in 
                subparagraph (A)(v)(II), gross receipts--
                            ``(i) shall include proceeds from program 
                        services, fundraising events, federated 
                        campaigns, gifts, donor-advised funds, and 
                        funds from similar sources; and
                            ``(ii) shall not include--
                                    ``(I) Federal grants (excluding any 
                                loan forgiveness on loans received 
                                under paragraph (36) or this 
                                paragraph);
                                    ``(II) revenues from a supporting 
                                organization;
                                    ``(III) grants from private 
                                foundations that are disbursed over the 
                                course of more than 1 calendar year;
                                    ``(IV) any contribution of property 
                                other than money, stocks, bonds, and 
                                other securities, provided that the 
                                non-cash contribution is not sold by 
                                the organization in a transaction 
                                unrelated to the tax-exempt purpose of 
                                the organization; or
                                    ``(V) any loan proceeds from a loan 
                                made under paragraph (36).
                    ``(H) Loan forgiveness.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, an eligible 
                        entity shall be eligible for forgiveness of 
                        indebtedness on a covered loan in the same 
                        manner as an eligible recipient with respect to 
                        a loan made under paragraph (36), as described 
                        in section 1106 of the CARES Act (15 U.S.C. 
                        9005).
                            ``(ii) Forgiveness amount.--An eligible 
                        entity shall be eligible for forgiveness of 
                        indebtedness on a covered loan in an amount 
                        equal to the sum of the following costs 
                        incurred or expenditures made during the 
                        covered period:
                                    ``(I) Payroll costs.
                                    ``(II) Any payment of interest on 
                                any covered mortgage obligation (which 
                                shall not include any prepayment of or 
                                payment of principal on a covered 
                                mortgage obligation).
                                    ``(III) Any covered operations 
                                expenditure.
                                    ``(IV) Any covered property damage 
                                cost.
                                    ``(V) Any payment on any covered 
                                rent obligation.
                                    ``(VI) Any covered utility payment.
                                    ``(VII) Any covered supplier cost.
                                    ``(VIII) Any covered worker 
                                protection expenditure.
                            ``(iii) Limitation on forgiveness for all 
                        eligible entities.--The forgiveness amount 
                        under this subparagraph shall be equal to the 
                        lesser of--
                                    ``(I) the amount described in 
                                clause (ii); and
                                    ``(II) the amount equal to the 
                                quotient obtained by dividing--
                                            ``(aa) the amount of the 
                                        covered loan used for payroll 
                                        costs during the covered 
                                        period; and
                                            ``(bb) 0.60.
                    ``(I) Lender eligibility.--Except as otherwise 
                provided in this paragraph, a lender approved to make 
                loans under paragraph (36) may make covered loans under 
                the same terms and conditions as in paragraph (36).
                    ``(J) Reimbursement for loan processing and 
                servicing.--The Administrator shall reimburse a lender 
                authorized to make a covered loan in an amount that 
                is--
                            ``(i) 3 percent of the principal amount of 
                        the financing of the covered loan up to 
                        $350,000; and
                            ``(ii) 1 percent of the principal amount of 
                        the financing of the covered loan above 
                        $350,000, if applicable.
                    ``(K) Set aside for small entities.--Not less than 
                $25,000,000,000 of the total amount of covered loans 
                guaranteed by the Administrator shall be made to 
                eligible entities with not more than 10 employees as of 
                February 15, 2020.
                    ``(L) Set aside for community financial 
                institutions, small insured depository institutions, 
                credit unions, and farm credit system institutions.--
                Not less than $10,000,000,000 of the total amount of 
                covered loans guaranteed by the Administrator shall be 
                made by--
                            ``(i) community financial institutions;
                            ``(ii) insured depository institutions with 
                        consolidated assets of less than 
                        $10,000,000,000;
                            ``(iii) credit unions with consolidated 
                        assets of less than $10,000,000,000; and
                            ``(iv) institutions of the Farm Credit 
                        System chartered under the Farm Credit Act of 
                        1971 (12 U.S.C. 2001 et seq.) with consolidated 
                        assets of less than $10,000,000,000 (not 
                        including the Federal Agricultural Mortgage 
                        Corporation).
                    ``(M) Publication of guidance.--Not later than 10 
                days after the date of enactment of this paragraph, the 
                Administrator shall issue guidance addressing barriers 
                to accessing capital for minority, underserved, 
                veteran, and women-owned business concerns for the 
                purpose of ensuring equitable access to covered loans.
                    ``(N) Standard operating procedure.--The 
                Administrator shall, to the maximum extent practicable, 
                allow a lender approved to make covered loans to use 
                existing program guidance and standard operating 
                procedures for loans made under this subsection.
                    ``(O) Prohibition on use of proceeds for lobbying 
                activities.--None of the proceeds of a covered loan may 
                be used for--
                            ``(i) lobbying activities, as defined in 
                        section 3 of the Lobbying Disclosure Act of 
                        1995 (2 U.S.C. 1602);
                            ``(ii) lobbying expenditures related to a 
                        State or local election; or
                            ``(iii) expenditures designed to influence 
                        the enactment of legislation, appropriations, 
                        regulation, administrative action, or Executive 
                        order proposed or pending before Congress or 
                        any State government, State legislature, or 
                        local legislature or legislative body.''.
    (i) Continued Access to the Paycheck Protection Program.--
            (1) In general.--Section 7(a)(36)(E)(ii) of the Small 
        Business Act (15 U.S.C. 636(a)(36)(E)(ii)) is amended by 
        striking ``$10,000,000'' and inserting ``$2,000,000''.
            (2) Applicability of maximum loan amount calculation.--
                    (A) Definitions.--In this paragraph, the terms 
                ``covered loan'' and ``eligible recipient'' have the 
                meanings given those terms in section 7(a)(36) of the 
                Small Business Act (15 U.S.C. 636(a)(36)).
                    (B) Applicability.--The amendment made by paragraph 
                (1) shall apply only with respect to a covered loan 
                applied for by an eligible recipient on or after the 
                date of enactment of this Act.
    (j) Increased Ability for Paycheck Protection Program Borrowers to 
Request an Increase in Loan Amount Due to Updated Regulations.--
            (1) Definitions.--In this subsection, the terms ``covered 
        loan'' and ``eligible recipient'' have the meanings given those 
        terms in section 7(a)(36) of the Small Business Act (15 U.S.C. 
        636(a)(36)).
            (2) Increased amount.--Notwithstanding the interim final 
        rule issued by the Administration entitled ``Business Loan 
        Program Temporary Changes; Paycheck Protection Program--Loan 
        Increases'' (85 Fed. Reg. 29842 (May 19, 2020)), an eligible 
        recipient of a covered loan that is eligible for an increased 
        covered loan amount as a result of any interim final rule that 
        allows for covered loan increases may submit a request for an 
        increase in the covered loan amount even if--
                    (A) the initial covered loan amount has been fully 
                disbursed; or
                    (B) the lender of the initial covered loan has 
                submitted to the Administration a Form 1502 report 
                related to the covered loan.
    (k) Calculation of Maximum Loan Amount for Farmers and Ranchers 
Under the Paycheck Protection Program.--
            (1) In general.--Section 7(a)(36) of the Small Business Act 
        (15 U.S.C. 636(a)(36)), as amended by subsection (i) of this 
        section, is amended--
                    (A) in subparagraph (E), in the matter preceding 
                clause (i), by striking ``During'' and inserting 
                ``Except as provided in subparagraph (T), during''; and
                    (B) 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) $2,000,000.
                            ``(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.''.
    (l) Farm Credit System Institutions.--
            (1) Definition of farm credit system institution.--In this 
        subsection, the term ``Farm Credit System institution''--
                    (A) means an institution of the Farm Credit System 
                chartered under the Farm Credit Act of 1971 (12 U.S.C. 
                2001 et seq.); and
                    (B) does not include the Federal Agricultural 
                Mortgage Corporation.
            (2) Facilitation of participation in ppp and second draw 
        loans.--
                    (A) Applicable rules.--Solely with respect to loans 
                under paragraphs (36) and (37) of section 7(a) of the 
                Small Business Act (15 U.S.C. 636(a)), Farm Credit 
                Administration regulations and guidance issued as of 
                July 14, 2020, and compliance with such regulations and 
                guidance, shall be deemed functionally equivalent to 
                requirements referenced in section 3(a)(iii)(II) of the 
                interim final rule of the Administration entitled 
                ``Business Loan Program Temporary Changes; Paycheck 
                Protection Program'' (85 Fed. Reg. 20811 (April 15, 
                2020)) or any similar requirement referenced in that 
                interim final rule in implementing such paragraph (37).
                    (B) Applicability of certain loan requirements.--
                For purposes of making loans under paragraph (36) or 
                (37) of section 7(a) of the Small Business Act (15 
                U.S.C. 636(a)) or forgiving those loans in accordance 
                with section 1106 of the CARES Act (15 U.S.C. 9005) and 
                subparagraph (H) of such paragraph (37), sections 4.13, 
                4.14, and 4.14A of the Farm Credit Act of 1971 (12 
                U.S.C. 2199, 2202, 2202a) (including regulations issued 
                under those sections) shall not apply.
                    (C) Risk weight.--
                            (i) In general.--With respect to the 
                        application of Farm Credit Administration 
                        capital requirements, a loan described in 
                        clause (ii)--
                                    (I) shall receive a risk weight of 
                                zero percent; and
                                    (II) shall not be included in the 
                                calculation of any applicable leverage 
                                ratio or other applicable capital ratio 
                                or calculation.
                            (ii) Loans described.--A loan referred to 
                        in clause (i) is--
                                    (I) a loan made by a Farm Credit 
                                Bank described in section 1.2(a) of the 
                                Farm Credit Act of 1971 (12 U.S.C. 
                                2002(a)) to a Federal Land Bank 
                                Association, a Production Credit 
                                Association, or an agricultural credit 
                                association described in that section 
                                to make loans under paragraph (36) or 
                                (37) of section 7(a) of the Small 
                                Business Act (15 U.S.C. 636(a)) or 
                                forgive those loans in accordance with 
                                section 1106 of the CARES Act (15 
                                U.S.C. 9005) and subparagraph (H) of 
                                such paragraph (37); or
                                    (II) a loan made by a Federal Land 
                                Bank Association, a Production Credit 
                                Association, an agricultural credit 
                                association, or the bank for 
                                cooperatives described in section 
                                1.2(a) of the Farm Credit Act of 1971 
                                (12 U.S.C. 2002(a)) under paragraph 
                                (36) or (37) of section 7(a) of the 
                                Small Business Act (15 U.S.C. 636(a)).
                    (D) Reservation of loan guarantees.--Section 
                7(a)(36)(S) of the Small Business Act (15 U.S.C. 
                636(a)(36)(S)) is amended--
                            (i) in clause (i)--
                                    (I) in subclause (I), by striking 
                                ``and'' at the end;
                                    (II) in subclause (II), by striking 
                                the period at the end and inserting ``; 
                                and''; and
                                    (III) by adding at the end the 
                                following:
                                    ``(III) institutions of the Farm 
                                Credit System chartered under the Farm 
                                Credit Act of 1971 (12 U.S.C. 2001 et 
                                seq.) with consolidated assets of not 
                                less than $10,000,000,000 and less than 
                                $50,000,000,000.''; and
                            (ii) in clause (ii)--
                                    (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 
                                following:
                                    ``(IV) institutions of the Farm 
                                Credit System chartered under the Farm 
                                Credit Act of 1971 (12 U.S.C. 2001 et 
                                seq.) with consolidated assets of less 
                                than $10,000,000,000.''.
    (m) Definition of Seasonal Employer.--
            (1) PPP loans.--Section 7(a)(36)(A) of the Small Business 
        Act (15 U.S.C. 636(a)(36)(A)) is amended--
                    (A) in clause (xi), by striking ``and'' at the end;
                    (B) in clause (xii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(xiii) the term `seasonal employer' means 
                        an eligible recipient that--
                                    ``(I) does not operate for more 
                                than 7 months in any calendar year; or
                                    ``(II) during the preceding 
                                calendar year, had gross receipts for 
                                any 6 months of that year that were not 
                                more than 33.33 percent of the gross 
                                receipts of the employer for the other 
                                6 months of that year.''.
            (2) Loan forgiveness.--Paragraph (12) of section 1106(a) of 
        the CARES Act (15 U.S.C. 9005(a)), as so redesignated by 
        subsection (c)(2) of this section, is amended to read as 
        follows:
            ``(12) the terms `payroll costs' and `seasonal employer' 
        have the meanings given those terms in section 7(a)(36) of the 
        Small Business Act (15 U.S.C. 636(a)(36)).''.
    (n) Eligibility of 501(c)(6) Organizations for Loans Under 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 clause (v), by inserting ``or whether an 
        organization described in clause (vii) employs not more than 
        150 employees,'' after ``clause (i)(I),'';
            (2) in clause (vi), by inserting ``, an organization 
        described in clause (vii),'' after ``nonprofit organization''; 
        and
            (3) by adding at the end the following:
                            ``(vii) Eligibility for certain 501(c)(6) 
                        organizations.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), any 
                                organization that is described in 
                                section 501(c)(6) of the Internal 
                                Revenue Code and that is exempt from 
                                taxation under section 501(a) of such 
                                Code (excluding professional sports 
                                leagues and organizations with the 
                                purpose of promoting or participating 
                                in a political campaign or other 
                                activity) shall be eligible to receive 
                                a covered loan if--
                                            ``(aa) the organization 
                                        does not receive more than 10 
                                        percent of its receipts from 
                                        lobbying activities;
                                            ``(bb) the lobbying 
                                        activities of the organization 
                                        do not comprise more than 10 
                                        percent of the total activities 
                                        of the organization; and
                                            ``(cc) the organization 
                                        employs not more than 150 
                                        employees.
                                    ``(II) Destination marketing 
                                organizations.--Notwithstanding 
                                subclause (I), during the covered 
                                period, any destination marketing 
                                organization shall be eligible to 
                                receive a covered loan if--
                                            ``(aa) the destination 
                                        marketing organization does not 
                                        receive more than 10 percent of 
                                        its receipts from lobbying 
                                        activities;
                                            ``(bb) the lobbying 
                                        activities of the destination 
                                        marketing organization do not 
                                        comprise more than 10 percent 
                                        of the total activities of the 
                                        organization;
                                            ``(cc) the destination 
                                        marketing organization employs 
                                        not more than 150 employees; 
                                        and
                                            ``(dd) the destination 
                                        marketing organization--

                                                    ``(AA) is described 
                                                in section 501(c) of 
                                                the Internal Revenue 
                                                Code and is exempt from 
                                                taxation under section 
                                                501(a) of such Code; or

                                                    ``(BB) is a quasi-
                                                governmental entity or 
                                                is a political 
                                                subdivision of a State 
                                                or local government, 
                                                including any 
                                                instrumentality of 
                                                those entities.''.

    (o) 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 proceeds 
                        of a covered loan may be used for--
                                    ``(I) lobbying activities, as 
                                defined in section 3 of the Lobbying 
                                Disclosure Act of 1995 (2 U.S.C. 1602);
                                    ``(II) lobbying expenditures 
                                related to a State or local election; 
                                or
                                    ``(III) expenditures designed to 
                                influence the enactment of legislation, 
                                appropriations, regulation, 
                                administrative action, or Executive 
                                order proposed or pending before 
                                Congress or any State government, State 
                                legislature, or local legislature or 
                                legislative body.''.
    (p) Effective Date; Applicability.--The amendments made to 
paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) and title I of the CARES Act (Public Law 116-136) under this 
section shall be effective as if included in the CARES Act 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)).
    (q) Bankruptcy Provisions.--
            (1) In general.--Section 364 of title 11, United States 
        Code, is amended by adding at the end the following:
    ``(g)(1) The court, after notice and a hearing, may authorize a 
debtor in possession or a trustee that is authorized to operate the 
business of the debtor under section 1183, 1184, 1203, 1204, or 1304 of 
this title to obtain a loan under paragraph (36) or (37) of section 
7(a) of the Small Business Act (15 U.S.C. 636(a)), and such loan shall 
be treated as a debt to the extent the loan is not forgiven in 
accordance with section 1106 of the CARES Act (15 U.S.C. 9005) or 
subparagraph (H) of such paragraph (37), as applicable, with priority 
equal to a claim of the kind specified in subsection (c)(1) of this 
section.
    ``(2) The trustee may incur debt described in paragraph (1) 
notwithstanding any provision in a contract, prior order authorizing 
the trustee to incur debt under this section, prior order authorizing 
the trustee to use cash collateral under section 363, or applicable law 
that prohibits the debtor from incurring additional debt.
    ``(3) The court shall hold a hearing within 7 days after the filing 
and service of the motion to obtain a loan described in paragraph (1). 
Notwithstanding the Federal Rules of Bankruptcy Procedure, at such 
hearing, the court may grant relief on a final basis.''.
            (2) Allowance of administrative expenses.--Section 503(b) 
        of title 11, United States Code, is amended--
                    (A) in paragraph (8)(B), by striking ``and'' at the 
                end;
                    (B) in paragraph (9), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) any debt incurred under section 364(g)(1) of this 
        title.''.
            (3) Confirmation of plan for reorganization.--Section 1191 
        of title 11, United States Code, is amended by adding at the 
        end the following:
    ``(f) Special Provision Related to COVID-19 Pandemic.--
Notwithstanding section 1129(a)(9)(A) of this title and subsection (e) 
of this section, a plan that provides for payment of a claim of a kind 
specified in section 503(b)(10) of this title may be confirmed under 
subsection (b) of this section if the plan proposes to make payments on 
account of such claim when due under the terms of the loan giving rise 
to such claim.''.
            (4) Confirmation of plan for family farmers and 
        fishermen.--Section 1225 of title 11, United States Code, is 
        amended by adding at the end the following:
    ``(d) Notwithstanding section 1222(a)(2) of this title and 
subsection (b)(1) of this section, a plan that provides for payment of 
a claim of a kind specified in section 503(b)(10) of this title may be 
confirmed if the plan proposes to make payments on account of such 
claim when due under the terms of the loan giving rise to such 
claim.''.
            (5) Confirmation of plan for individuals.--Section 1325 of 
        title 11, United States Code, is amended by adding at the end 
        the following:
    ``(d) Notwithstanding section 1322(a)(2) of this title and 
subsection (b)(1) of this section, a plan that provides for payment of 
a claim of a kind specified in section 503(b)(10) of this title may be 
confirmed if the plan proposes to make payments on account of such 
claim when due under the terms of the loan giving rise to such 
claim.''.
            (6) Effective date; sunset.--
                    (A) Effective date.--The amendments made by 
                paragraphs (1) through (5) shall--
                            (i) take effect on the date on which the 
                        Administrator submits to the Director of the 
                        Executive Office for United States Trustees a 
                        written determination that, subject to 
                        satisfying any other eligibility requirements, 
                        any debtor in possession or trustee that is 
                        authorized to operate the business of the 
                        debtor under section 1183, 1184, 1203, 1204, or 
                        1304 of title 11, United States Code, would be 
                        eligible for a loan under paragraphs (36) and 
                        (37) of section 7(a) of the Small Business Act 
                        (15 U.S.C. 636(a)); and
                            (ii) apply to any case pending on or 
                        commenced on or after the date described in 
                        clause (i).
                    (B) Sunset.--
                            (i) In general.--If the amendments made by 
                        this subsection take effect under subparagraph 
                        (A), effective on the date that is 2 years 
                        after the date of enactment of this Act--
                                    (I) section 364 of title 11, United 
                                States Code, is amended by striking 
                                subsection (g);
                                    (II) section 503(b) of title 11, 
                                United States Code, is amended--
                                            (aa) in paragraph (8)(B), 
                                        by adding ``and'' at the end;
                                            (bb) in paragraph (9), by 
                                        striking ``; and'' at the end 
                                        and inserting a period; and
                                            (cc) by striking paragraph 
                                        (10);
                                    (III) section 1191 of title 11, 
                                United States Code, is amended by 
                                striking subsection (f);
                                    (IV) section 1225 of title 11, 
                                United States Code, is amended by 
                                striking subsection (d); and
                                    (V) section 1325 of title 11, 
                                United States Code, is amended by 
                                striking subsection (d).
                            (ii) Applicability.--Notwithstanding the 
                        amendments made by clause (i) of this 
                        subparagraph, if the amendments made by 
                        paragraphs (1), (2), (3), (4), and (5) take 
                        effect under subparagraph (A) of this 
                        paragraph, such amendments shall apply to any 
                        case under title 11, United States Code, 
                        commenced before the date that is 2 years after 
                        the date of enactment of this Act.
    (r) Oversight.--
            (1) Compliance with oversight requirements.--
                    (A) In general.--Except as provided in subparagraph 
                (B), on and after the date of enactment of this Act, 
                the Administrator shall comply with any data or 
                information requests or inquiries made by the 
                Comptroller General of the United States not later than 
                30 days (or such later date as the Comptroller General 
                may specify) after receiving the request or inquiry.
                    (B) Exception.--If the Administrator is unable to 
                comply with a request or inquiry described in 
                subparagraph (A) within the 30-day period or, if 
                applicable, later period described in that clause, the 
                Administrator shall, during that 30-day (or later) 
                period, submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives a 
                notification that includes a detailed justification for 
                the inability of the Administrator to comply with the 
                request or inquiry.
            (2) Testimony.--Not later than the date that is 30 days 
        after the date of enactment of this Act, and every quarter 
        thereafter until the date that is 2 years after the date of 
        enactment of this Act, the Administrator and the Secretary of 
        the Treasury shall testify before the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business of the House of Representatives regarding 
        implementation of this section and the amendments made by this 
        section.
    (s) Conflicts of Interest.--
            (1) Definitions.--In this subsection:
                    (A) Controlling interest.--The term ``controlling 
                interest'' means owning, controlling, or holding not 
                less than 20 percent, by vote or value, of the 
                outstanding amount of any class of equity interest in 
                an entity.
                    (B) Covered entity.--
                            (i) Definition.--The term ``covered 
                        entity'' means an entity in which a covered 
                        individual directly or indirectly holds a 
                        controlling interest.
                            (ii) Treatment of securities.--For the 
                        purpose of determining whether an entity is a 
                        covered entity, the securities owned, 
                        controlled, or held by 2 or more individuals 
                        who are related as described in subparagraph 
                        (C)(ii) shall be aggregated.
                    (C) Covered individual.--The term ``covered 
                individual'' means--
                            (i) the President, the Vice President, the 
                        head of an Executive department, or a Member of 
                        Congress; and
                            (ii) the spouse, child, son-in-law, or 
                        daughter-in-law, as determined under applicable 
                        common law, of an individual described in 
                        clause (i).
                    (D) Executive department.--The term ``Executive 
                department'' has the meaning given the term in section 
                101 of title 5, United States Code.
                    (E) Member of congress.--The term ``Member of 
                Congress'' means a Member of the Senate or House of 
                Representatives, a Delegate to the House of 
                Representatives, and the Resident Commissioner from 
                Puerto Rico.
                    (F) Equity interest.--The term ``equity interest'' 
                means--
                            (i) a share in an entity, without regard to 
                        whether the share is--
                                    (I) transferable; or
                                    (II) classified as stock or 
                                anything similar;
                            (ii) a capital or profit interest in a 
                        limited liability company or partnership; or
                            (iii) a warrant or right, other than a 
                        right to convert, to purchase, sell, or 
                        subscribe to a share or interest described in 
                        clause (i) or (ii), respectively.
            (2) Requirement.--The principal executive officer and the 
        principal financial officer, or individuals performing similar 
        functions, of an entity seeking to enter a transaction made 
        under paragraph (36) or (37) of section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)), as added and amended by this 
        section, shall, before that transaction is approved, disclose 
        to the Administrator whether the entity is a covered entity.
            (3) Applicability.--The requirement under paragraph (2)--
                    (A) shall apply with respect to any transaction 
                made under paragraph (36) or (37) of section 7(a) of 
                the Small Business Act (15 U.S.C. 636(a)), as added and 
                amended by this section, on or after the date of 
                enactment of this Act; and
                    (B) shall not apply with respect to--
                            (i) any transaction described in 
                        subparagraph (A) that was made before the date 
                        of enactment of this Act; or
                            (ii) forgiveness under section 1106 of the 
                        CARES Act (15 U.S.C. 9005) or any other 
                        provision of law of any loan associated with 
                        any transaction described in subparagraph (A) 
                        that was made before the date of enactment of 
                        this Act.
    (t) Commitment Authority and Appropriations.--
            (1) Commitment authority.--Section 1102(b) of the CARES Act 
        (Public Law 116-136) is amended--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by inserting 
                        ``and second draw'' after ``PPP'';
                            (ii) by striking ``August 8, 2020'' and 
                        inserting ``December 31, 2020'';
                            (iii) by striking ``paragraph (36)'' and 
                        inserting ``paragraphs (36) and (37)''; and
                            (iv) by striking ``$659,000,000,000'' and 
                        inserting ``$779,640,000,000''; and
                    (B) by amending paragraph (2) to read as follows:
            ``(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 `Small 
        Business Administration--Business Loans Program Account' in the 
        Financial Services and General Government Appropriations Act, 
        2020 (division C of Public Law 116-193) shall apply with 
        respect to any commitments under such section 7(a) other than 
        under paragraphs (36) and (37) of such section 7(a).''.
            (2) Direct appropriations.--
                    (A) New direct appropriations for ppp loans, second 
                draw loans, and the mbda.--There is appropriated, out 
                of amounts in the Treasury not otherwise appropriated, 
                for the fiscal year ending September 30, 2020, to 
                remain available until September 30, 2021, for 
                additional amounts--
                            (i) $257,640,000,000 under the heading 
                        ``Small Business Administration--Business Loans 
                        Program Account, CARES Act'' for the cost of 
                        guaranteed loans as authorized under paragraph 
                        (36) and (37) of section 7(a) of the Small 
                        Business Act (15 U.S.C. 636(a)), as amended and 
                        added by this Act;
                            (ii) $10,000,000 under the heading 
                        ``Department of Commerce--Minority Business 
                        Development Agency'' for minority business 
                        centers of the Minority Business Development 
                        Agency to provide technical assistance to small 
                        business concerns; and
                            (iii) $50,000,000 under the heading ``Small 
                        Business Administration--Salaries and 
                        Expenses'' for the cost of carrying out reviews 
                        and audits of loans under subsection (l) of 
                        section 1106 of the CARES Act (15 U.S.C. 9005), 
                        as amended by this Act.
                    (B) Availability of amounts appropriated for the 
                office of inspector general.--Section 1107(a)(3) of the 
                CARES Act (15 U.S.C. 9006(a)(3)) is amended by striking 
                ``September 20, 2024'' and inserting ``expended''.
            (3) Rescission.--Of the unobligated balances in the 
        appropriations account under the heading ``Small Business 
        Administration--Business Loans Program Account, CARES Act'' as 
        of the day before the date of enactment of this Act, effective 
        on the date of enactment of this Act $137,000,000,000 shall be 
        rescinded and deposited into the general fund of the Treasury.
            (4) Emergency designation.--
                    (A) In general.--The amounts provided under this 
                subsection are designated as an emergency requirement 
                pursuant to section 4(g) of the Statutory Pay-As-You-Go 
                Act of 2010 (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this 
                subsection is designated as an emergency requirement 
                pursuant to section 4112(a) of H. Con. Res. 71 (115th 
                Congress), the concurrent resolution on the budget for 
                fiscal year 2018.
                                                       Calendar No. 562

116th CONGRESS

  2d Session

                                S. 4773

_______________________________________________________________________

                                 A BILL

To establish the Paycheck Protection Program Second Draw Loan, and for 
                            other purposes.

_______________________________________________________________________

                            October 1, 2020

            Read the second time and placed on the calendar