PPP Small Business Support Act

Bill: 116-hr-6755
Sponsor: full_name: Rep. Foster, Bill [D-IL-11]
Introduced: 2020-05-08
Policy area: Commerce
Subjects: Appropriations

Bank accounts, deposits, capital

Banking and financial institutions regulation

Business expenses

Cardiovascular and respiratory health

Credit and credit markets

Emergency medical services and trauma care

Government lending and loan guarantees

Infectious and parasitic diseases

Small business
Latest action: action_date: 2020-05-08
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2020-05-08
action_desc: Introduced in House
text: <p><b>PPP Small Business Support Act</b></p> <p>This bill revises reimbursement requirements pursuant to which the Small Business Administration (SBA) provides funds to lenders participating in the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>Specifically, the bill requires the SBA to give a lender that makes a paycheck protection loan a reimbursement of $1,000 for each such loan, with graduated additional amounts distributed to a lender based on the amount of the loan. The bill also provides a further reimbursement of $250 for each paycheck protection loan that a lender with consolidated assets of less than $50 billion provides to a new customer.</p> <p>Further, the bill requires the SBA to determine whether demand for paycheck protection loans is likely to exceed any future appropriated amounts and, if so, to prioritize providing guarantees for loans of $300,000 or less.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6755 IN THE HOUSE OF REPRESENTATIVES May 8, 2020 Mr. Foster introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to revise requirements under the paycheck protection program, and for other purposes.

1. Short title This Act may be cited as the PPP Small Business Support Act . 2. Amendments to the Paycheck Protection Program Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ), as amended by subsection (b)(2), is further amended— (1) in subparagraph (P)— (A) by amending clause (i) to read as follows: (i) In general The Administrator shall reimburse a lender authorized to make a covered loan as follows: (I) For each covered loan made by the lender, $1,000. (II) In addition to the amount in subclause (I), an amount based on the balance of the financing outstanding at the time of disbursement of the covered loan, equal to— (aa) 10 percent of the amount of such balance that does not exceed $100,000, plus (bb) 3 percent of the amount of such balance that exceeds $100,000 but does not exceed $1,000,000, plus (cc) 0.2 percent of the amount of such balance that exceeds $1,000,000. ; (B) by redesignating clauses (ii) through (iv) as clauses (iii) through (v), respectively; and (C) by inserting after clause (i) the following new clause: (ii) Small lenders In addition to reimbursement received under clause (i), the Administrator shall reimburse a lender with consolidated assets of less than $50,000,000,000 that is authorized to make a covered loan $250 for each covered loan made to an eligible recipient, if such eligible recipient was not a customer of such lender before applying for assistance under this paragraph. ; and (2) by adding at the end the following new subparagraph: (X) Prioritization With respect to amounts appropriated to carry out this paragraph on or after the date of the enactment of this subparagraph, the Administrator shall, for each such appropriation, in consultation with the Secretary of the Treasury, determine whether the projected aggregate demand for covered loans under this paragraph will likely exceed the amount appropriated to carry out this paragraph and, if the Administrator so determines, the Administrator and Secretary shall, prior to the obligation of any such appropriated amounts, jointly develop a process to prioritize providing guarantees for covered loans with a principal amount of $300,000 or less using such appropriated funds. .