Paycheck Protection Program Second Chance Act

Bill: 116-s-3865
Sponsor: full_name: Sen. Portman, Rob [R-OH]
Introduced: 2020-06-02
Policy area: Commerce
Subjects: Administrative law and regulatory procedures

Business expenses

Cardiovascular and respiratory health

Criminal procedure and sentencing

Emergency medical services and trauma care

Government lending and loan guarantees

Infectious and parasitic diseases

Small Business Administration

Small business

Wages and earnings
Latest action: action_date: 2020-06-10
text: Committee on Small Business and Entrepreneurship. Hearings held.

Summaries:
action_date: 2020-06-02
action_desc: Introduced in Senate
text: <p><b>Paycheck Protection Program Second Chance Act</b></p> <p>This bill requires specified treatment of certain criminal violations under the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>Specifically, the bill provides that an entity shall not be ineligible for a paycheck protection loan if certain owners have prior arrests or convictions, unless the owner (1) is incarcerated as of the date of the loan application, or (2) has been convicted of a felony of financial fraud or deception during the five-year period prior to the loan application.</p>

tv_txt: II 116th CONGRESS 2d Session S. 3865 IN THE SENATE OF THE UNITED STATES June 2, 2020 Mr. Portman (for himself, Mr. Cardin , Mr. Lankford , and Mr. Booker ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To provide for the treatment of certain criminal violations under the paycheck protection program, and for other purposes.

1. Short title This Act may be cited as the Paycheck Protection Program Second Chance Act . 2. Treatment of certain criminal violations under the paycheck protection program (a) In general Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) is amended by adding at the end the following: (T) Treatment of certain criminal violations (i) Arrests or convictions Except as provided in clause (ii), an entity that is a business, organization, cooperative, or enterprise shall be an eligible recipient notwithstanding an arrest or conviction under Federal, State, or Tribal law of an owner of not less than 20 percent of the equity of the entity, unless the owner is incarcerated on the date on which the entity applies for a covered loan. (ii) Financial fraud or deception Notwithstanding clause (i), an entity that is a business, organization, cooperative, or enterprise may not receive a covered loan if, during the 5-year period preceding the date on which the entity applies for a covered loan, an owner of not less than 20 percent of the equity of the entity has been convicted of a felony of financial fraud or deception under Federal, State, or Tribal law. (iii) Waiver The Administrator may waive the requirements under clause (ii). . (b) Rulemaking Not later than 15 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall make necessary revisions to any rules of the Administration to carry out the amendment made by subsection (a).