Paycheck Protection for Producers Act

Bill: 116-s-3918
Sponsor: full_name: Sen. Thune, John [R-SD]
Introduced: 2020-06-09
Policy area: Commerce
Subjects: Agricultural prices, subsidies, credit

Business expenses

Cardiovascular and respiratory health

Emergency medical services and trauma care

Government lending and loan guarantees

Infectious and parasitic diseases

Small business

Wages and earnings
Latest action: action_date: 2020-06-09
text: Read twice and referred to the Committee on Small Business and Entrepreneurship. (text: CR S2809)

Summaries:
action_date: 2020-06-09
action_desc: Introduced in Senate
text: <p><b>Paycheck Protection for Producers Act</b></p> <p>This bill modifies the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), by allowing certain farmers to calculate (or recalculate) their paycheck protection loan amount based on 2019 gross income.</p> <p>Under current law, such farmers must calculate their paycheck protection loan amount based on net income.</p>

tv_txt: II 116th CONGRESS 2d Session S. 3918 IN THE SENATE OF THE UNITED STATES June 9, 2020 Mr. Thune (for himself and Ms. Baldwin ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To modify the calculation of the maximum loan amount for certain farmers and ranchers under the paycheck protection program of the Small Business Administration, and for other purposes.

1. Short title This Act may be cited as the Paycheck Protection for Producers Act . 2. Calculation of maximum loan amount for farmers and ranchers 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— (1) in subparagraph (E), in the matter preceding clause (i), by striking During and inserting Except as provided in subparagraph (T), during ; and (2) by adding at the end the following: (T) Calculation of maximum loan amount for farmers and ranchers (i) Definition In this subparagraph, the term covered recipient means an eligible recipient that— (I) operates as a sole proprietorship or as an independent contractor, or is an eligible self-employed individual; (II) reports farm income or expenses on a Schedule F (or any equivalent successor schedule); and (III) was in business during the period beginning on February 15, 2019, and ending on June 30, 2019. (ii) No employees With respect to covered recipient without employees, the maximum covered loan amount shall be the lesser of— (I) the sum of— (aa) the product obtained by multiplying— (AA) the gross income of the covered recipient in 2019, as reported on a Schedule F (or any equivalent successor schedule), that is not more than $100,000, divided by 12; and (BB) 2.5; and (bb) the outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020, and ending on April 3, 2020, that the borrower intends to refinance under the covered loan, not including any amount of any advance under the loan that is not required to be repaid; or (II) $10,000,000. (iii) With employees With respect to a covered recipient with employees, the maximum covered loan amount shall be calculated using the formula described in subparagraph (E), except that the gross income of the covered recipient described in clause (ii)(I)(aa)(AA) of this subparagraph, as divided by 12, shall be added to the sum calculated under subparagraph (E)(i)(I). (iv) Recalculation A lender that made a covered loan to a covered recipient before the date of enactment of this subparagraph may, at the request of the covered recipient— (I) recalculate the maximum loan amount applicable to that covered loan based on the formula described in clause (ii) or (iii), as applicable, if doing so would result in a larger covered loan amount; and (II) provide the covered recipient with additional covered loan amounts based on that recalculation. .