Paycheck Protection Program Integrity Act of 2020

Bill: 116-s-4489
Sponsor: full_name: Sen. Johnson, Ron [R-WI]
Introduced: 2020-08-06
Policy area: Commerce
Subjects: Business expenses

Business records

Cardiovascular and respiratory health

Emergency medical services and trauma care

Government information and archives

Government lending and loan guarantees

Infectious and parasitic diseases

Small business

Social work, volunteer service, charitable organizations

Tax administration and collection, taxpayers

Wages and earnings
Latest action: action_date: 2020-08-06
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.

Summaries:
action_date: 2020-08-06
action_desc: Introduced in Senate
text: <p><b>Paycheck Protection Program Integrity Act of 2020</b></p> <p>This bill modifies loan forgiveness 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 reduces the amount of loan forgiveness by (1) the amount of a recipient's after-tax income, or (2) the increase in net assets if the recipient is a nonprofit organization. A recipient seeking loan forgiveness must submit documentation verifying after-tax income and net assets to determine any paycheck protection loan repayment.</p> <p>Further, the bill requires the disclosure of paycheck protection loan information in accordance with applicable laws.</p>

tv_txt: II 116th CONGRESS 2d Session S. 4489 IN THE SENATE OF THE UNITED STATES August 6, 2020 Mr. Johnson introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To appropriately limit forgiveness of loans under the paycheck protection program and to clarify that records in the possession, custody, or control of the Federal Government relating to borrowers and loans under the paycheck protection program are subject to disclosure in accordance with applicable law.

1. Short title This Act may be cited as the Paycheck Protection Program Integrity Act of 2020 . 2. Forgiveness and disclosure (a) Reduction of forgiveness based on after-Tax income and increases in net assets (1) In general Section 1106(d) of the CARES Act ( 15 U.S.C. 9005(d) ) is amended— (A) by redesignating paragraph (8) as paragraph (10); and (B) by inserting after paragraph (7) the following: (8) Reduction relating to after-Tax income The amount of loan forgiveness under this section shall be reduced by the amount of after-tax income of the eligible recipient for the first taxable year ending after the date of issuance of the covered loan, up to the amount of the covered loan amount. (9) Reduction relating to increase in net assets of nonprofit organizations For an eligible recipient that is a nonprofit organization, the amount of loan forgiveness under this section shall be reduced by the amount of the increase, if any, in the net assets of the eligible recipient during the 1-year period beginning on the date of issuance of the covered loan, up to the amount of the covered loan amount. . (2) Documentation Section 1106(e) of the CARES Act ( 15 U.S.C. 9005(e) ) is amended— (A) in paragraph (3), by striking and at the end; (B) by redesignating paragraph (4) as paragraph (5); and (C) by inserting after paragraph (3) the following: (4) documentation verifying after-tax income and net assets for purposes of paragraphs (8) and (9) of subsection (d), including tax filings reported to the Internal Revenue Service; and . (3) Application The amendments made by paragraphs (1) and (2) shall apply to any loan made under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) on or after the date of enactment of this Act. (b) Disclosure of information 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) Disclosure of information Nothing in this paragraph shall be construed to limit or modify the duty or authority to disclose a record in the possession, custody, or control of the Federal Government that relates to an eligible recipient that receives a covered loan or to such covered loan (without regard to the amount of the covered loan, the number of employees of the eligible recipient, or other factors)— (i) to the public in accordance with section 552 of title 5, United States Code (commonly known as the “Freedom of Information Act”); (ii) to the Commissioner of Internal Revenue, the inspector general of an agency, the Pandemic Recovery Accountability Committee, a committee or member of Congress, or another officer or employee of the Federal Government in accordance with applicable law; or (iii) to another person or entity in accordance with applicable law. .