Small-Dollar PPP Forgiveness Simplification Act of 2021

Bill: 117-hr-5190
Sponsor: full_name: Rep. Houlahan, Chrissy [D-PA-6]
Introduced: 2021-09-07
Policy area: Commerce
Latest action: action_date: 2021-09-07
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2021-09-07
action_desc: Introduced in House
text: <p><strong>Small-Dollar PPP Forgiveness Simplification Act of 2021</strong></p> <p>This bill makes changes to the Paycheck Protection Program (PPP) to with respect to forgiveness of certain PPP loans.</p> <p>Specifically, the bill includes as covered loans under the PPP loan forgiveness program excess loan amounts that were received due to a good faith error. </p> <p>The bill also increases the threshold, from $150,000 to $350,000, used to determine whether a PPP loan may use the simplified forgiveness application.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 5190 IN THE HOUSE OF REPRESENTATIVES September 7, 2021 Ms. Houlahan (for herself and Mr. Evans ) introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to include excess loan amount errors in the forgiveness of a paycheck protection program loan, and for other purposes.

1. Short title This Act may be cited as the Small-Dollar PPP Forgiveness Simplification Act of 2021 . 2. Simplified application for covered loans up to $350,000 (a) In general Section 7A(l) of the Small Business Act ( 15 U.S.C. 636m(l) ) is amended— (1) in paragraph (1)— (A) in the paragraph heading, by striking $150,000 and inserting $350,000 ; and (B) by striking not more than $150,000 each place it appears and inserting less than or equal to $350,000 ; and (2) in paragraph (2)— (A) in the paragraph heading, by striking $150,000 and inserting $350,000 ; and (B) in subparagraph (A), by striking $150,000 and inserting $350,000 . (b) Effective date The amendment made by this subsection shall be effective as if included in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( Public Law 116–260 ; 134 Stat. 1993) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) before, on, or after the date of enactment of this Act, including forgiveness of such a loan. 3. Forgiveness of excess loan amounts for paycheck protection program loans (a) Paycheck protection program loans (1) In general Section 7A(a)(1) of the Small Business Act ( 15 U.S.C. 636m(a)(1) ) is amended by inserting before the semicolon at the end the following: and includes any amount of a covered loan received due to an excess loan amount error (as described in Procedural Notice 5000–20078 of the Administration titled Paycheck Protection Program Excess Loan Amount Errors and dated January 15, 2021) . (2) Conforming amendment Section 7A(l)(1)(A)(ii)(II) of the Small Business Act is amended by striking complied and inserting acted in good faith to comply . (3) Effective date The amendments made by this subsection shall be effective as if included in the CARES Act ( Public Law 116–136 ; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) before, on, or after the date of enactment of this Act, including forgiveness of such a loan. (4) Applicability to loans already forgiven The amendments made by this subsection shall apply to a loan made pursuant to section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) for which the borrower received forgiveness before the date of enactment of this Act under section 1106 of the CARES Act, as in effect on the day before the date of the enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( Public Law 116–260 ; 134 Stat. 1993), or section 7A of the Small Business Act ( 15 U.S.C. 636m ), as in effect on the day before the date of enactment of this Act. (b) Paycheck protection program second draw loans (1) In general Section 7(a)(37)(J)(i) of the Small Business Act ( 15 U.S.C. 636(a)(37)(J)(i) ) is amended to read as follows: (i) Definitions In this subparagraph— (I) the term covered loan includes any amount of a covered loan received due to an excess loan amount error (as described in Procedural Notice 5000–20078 of the Administration titled Paycheck Protection Program Excess Loan Amount Errors and dated January 15, 2021); and (II) the term covered period has the meaning given that term in section 7A(a). . (2) Effective date The amendment made by this subsection shall be effective as if included in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( Public Law 116–260 ; 134 Stat. 1993) and shall apply to any loan made pursuant to section 7(a)(37) of the Small Business Act ( 15 U.S.C. 636(a)(37) ) before, on, or after the date of enactment of this Act, including forgiveness of such a loan. (3) Applicability to loans already forgiven The amendment made by this subsection shall apply to a loan made pursuant to section 7(a)(37) of the Small Business Act ( 15 U.S.C. 636(a)(37) ) for which the borrower received forgiveness before the date of enactment of this Act.