summary
Introduced
07/27/2020
07/27/2020
In Committee
07/27/2020
07/27/2020
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
A bill to establish the Paycheck Protection Program Second Draw Loan and amend 7(a) loan guaranty program for recovery sector business concerns, and for other purposes. This bill establishes funding for, expands, and provides additional economic assistance to small businesses in response to COVID-19 (i.e., coronavirus disease 2019). Specifically, the Small Business Administration (SBA) is authorized to provide second draw loans of up to $2 million under the Paycheck Protection Program. A recipient shall be eligible for forgiveness of a second draw loan in the same manner as an initial paycheck protection loan. The SBA may also provide loans of up to $10 million to recovery sector small businesses (e.g., certain seasonal businesses and businesses located in low-income census tracts) to meet working capital needs, acquire fixed assets, or refinance existing indebtedness while recovering from the COVID-19 pandemic. Among other requirements, a loan recipient must demonstrate at least a 50% reduction in gross revenues. Further the bill modifies the Paycheck Protection Program by, among other things, (1) expanding forgivable expenses, (2) allowing borrowers to select an eight-week period through December 31, 2020, to use their paycheck protection loan, (3) simplifying the forgiveness application for smaller loans, (4) expanding eligibility to certain chambers of commerce and destination marketing organizations, and (5) establishing a specific loan calculation for farmers and ranchers. Lastly, the SBA must establish and carry out a facility to improve the recovery of eligible small businesses from the COVID-19 pandemic, increase resiliency in the manufacturing supply chain of small businesses, and increase economic development of small business low-income census tracts by providing financial assistance to participating investment companies that facilitate equity financing to eligible small businesses.
AI Summary
This bill establishes funding for, expands, and provides additional economic assistance to small businesses in response to COVID-19. Specifically, the Small Business Administration (SBA) is authorized to provide second draw loans of up to $2 million under the Paycheck Protection Program (PPP). Eligible entities can receive forgiveness of these second draw loans in the same manner as initial PPP loans. The SBA may also provide loans of up to $10 million to recovery sector small businesses (e.g., certain seasonal businesses and businesses located in low-income census tracts) to meet working capital needs, acquire fixed assets, or refinance existing indebtedness while recovering from the COVID-19 pandemic. The bill also modifies the PPP by expanding forgivable expenses, allowing borrowers to select an 8-week period through December 31, 2020 to use their PPP loan, simplifying the forgiveness application for smaller loans, expanding eligibility to certain chambers of commerce and destination marketing organizations, and establishing a specific loan calculation for farmers and ranchers. Lastly, the SBA must establish and carry out a facility to improve the recovery of eligible small businesses from the COVID-19 pandemic, increase resiliency in the manufacturing supply chain of small businesses, and increase economic development of small business low-income census tracts.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Read twice and referred to the Committee on Small Business and Entrepreneurship. (on 07/27/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/senate-bill/4321/all-info |
| BillText | https://www.congress.gov/116/bills/s4321/BILLS-116s4321is.pdf |
| Bill | https://www.congress.gov/116/bills/s4321/BILLS-116s4321is.pdf.pdf |
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