Simplifying PPP Forgiveness Act

Bill: 116-s-4954
Sponsor: full_name: Sen. Kennedy, John [R-LA]
Introduced: 2020-12-03
Policy area: Commerce
Subjects: Business expenses

Cardiovascular and respiratory health

Emergency medical services and trauma care

Government information and archives

Government lending and loan guarantees

Government studies and investigations

Infectious and parasitic diseases

Small business

Wages and earnings
Latest action: action_date: 2020-12-03
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.

Summaries:
action_date: 2020-12-03
action_desc: Introduced in Senate
text: <p>This bill revises the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), to simplify the application process for loan forgiveness and to establish or certify an online calculator that allows loan recipients to (1) estimate the amount of forgiveness for which they are eligible, and (2) assist with their loan forgiveness applications.</p>

tv_txt: II 116th CONGRESS 2d Session S. 4954 IN THE SENATE OF THE UNITED STATES December 3, 2020 Mr. Kennedy introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To amend the CARES Act to simplify the procedure for applying for forgiveness for certain loans made under the Paycheck Protection Program, and for other purposes.

1. Short title This Act may be cited as the Simplifying PPP Forgiveness Act . 2. Simplified application Section 1106 of the CARES Act ( 15 U.S.C. 9005 ) is amended— (1) in subsection (e), in the matter preceding paragraph (1), by striking An eligible and inserting Except as provided in subsection (m), an eligible ; (2) in subsection (f), by inserting or the information required under subsection (m), as applicable after subsection (e) ; and (3) by adding at the end the following: (m) Simplified application (1) In general Notwithstanding subsection (e), with respect to a covered loan made to an eligible recipient that is not more than $100,000, the covered loan amount shall be forgiven under this section if the eligible recipient— (A) signs and submits to the lender an attestation 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 (B) for the 3-year period following submission of the attestation under subparagraph (A), retains records relevant to the attestation that prove compliance with those requirements. (2) Demographic information An eligible recipient of a covered loan described in paragraph (1) may complete and submit any form related to borrower demographic information. (3) Audit The Administrator may— (A) review and audit covered loans described in paragraph (1); and (B) 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 paragraph (1); or (ii) the loan forgiveness amount with respect to a covered loan described in paragraph (1). . 3. Calculator for paycheck protection program loan forgiveness (a) Definitions In this section— (1) the term Administrator means the Administrator of the Small Business Administration; and (2) the term covered loan has the meaning given the term in section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ). (b) Online calculator The Administrator shall take actions, in accordance with this section, to ensure the availability of a calculator with respect to forgiveness of covered loans that— (1) is easily accessible by the public online; (2) can be utilized without cost; (3) with respect to a covered loan, allows a lender or recipient to accurately estimate the amount of loan forgiveness related to the covered loan; and (4) assists a lender or recipient to complete an application to request loan forgiveness with respect to a covered loan. (c) Manner of provision Not later than 5 days after the date of enactment of this Act, the Administrator shall establish, and thereafter maintain— (1) a calculator that satisfies the requirements specified in subsection (b); or (2) a process to certify a calculator established and maintained by a third party that satisfies those requirements. (d) Certification process requirements (1) In general If, under subsection (c), the Administrator elects only to establish the certification process referenced in paragraph (2) of that subsection, the Administrator— (A) not later than 10 days after the date of enactment of this Act, shall certify not less than 1 calculator that satisfies the requirements specified in subsection (b); (B) upon request, shall review and, after a certification under subparagraph (A), may certify additional calculators that satisfy the requirements specified in paragraphs (1), (3), and (4) of subsection (b), with certification determinations made not later than 10 days after the receipt of an application for review; and (C) not later than 10 days after the date of enactment of this Act, and weekly thereafter, shall make available to the public online a list specifying the calculators— (i) certified pursuant to this section; and (ii) under review for certification. (2) Assisted applications The Administrator shall accept an application to request loan forgiveness with respect to a covered loan submitted with the assistance of a calculator certified under this section. (3) Use of logo The Administrator may establish a logo that a third party may utilize to signify that a calculator is certified pursuant to this section. (e) Coordination with Department of the Treasury The Administrator shall carry out this section in coordination with the Secretary of the Treasury. (f) Expiration The requirements under this section shall cease to have effect on October 31, 2021.