Continuing Small Business Recovery and Paycheck Protection Program Act

Bill: 116-s-4321
Sponsor: Sen. Rubio, Marco [R-FL]
Introduced: 2020-07-27 in the Senate
Policy area: Commerce
Subjects: Accounting and auditing
Administrative law and regulatory procedures
Agricultural prices, subsidies, credit
Appropriations
Bankruptcy
Business ethics
Business expenses
Business investment and capital
Cardiovascular and respiratory health
Congressional oversight
Corporate finance and management
Crimes against property
Economic development
Emergency medical services and trauma care
Employee benefits and pensions
Executive agency funding and structure
Federal officials
Government ethics and transparency, public corruption
Government lending and loan guarantees
Government studies and investigations
Health technology, devices, supplies
Infectious and parasitic diseases
Licensing and registrations
Manufacturing
Members of Congress
Presidents and presidential powers, Vice Presidents
Public participation and lobbying
Securities
Small Business Administration
Small business
Tax-exempt organizations
Temporary and part-time employment
Wages and earnings
Worker safety and health

Summary:
action_date: 2020-07-27
text: 

Continuing Small Business Recovery and Paycheck Protection Program Act

 
This bill establishes funding for, expands, and provides additional economic assistance to small businesses in response to COVID-19 (i.e., coronavirus disease 2019). 
 
Specifically, the Small Business Administration (SBA) 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.
 
The SBA may also provide loans of up to $10 million to recovery sector small businesses (e.g., certain seasonal businesses and businesses located in low-income census tracts) to meet working capital needs, acquire fixed assets, or refinance existing indebtedness while recovering from the COVID-19 pandemic. Among other requirements, a loan recipient must demonstrate at least a 50% reduction in gross revenues. 
 
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 through December 31, 2020, 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.
 
Lastly, the SBA must establish and carry out a facility to improve the recovery of eligible small businesses from the COVID-19 pandemic, increase resiliency in the manufacturing supply chain of small businesses, and increase economic development of small business low-income census tracts by providing financial assistance to participating investment companies that facilitate equity financing to eligible small businesses.


Legislative actions:
action_date: 2020-07-27
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.
action_date: 2020-07-27
text: Introduced in Senate