Paycheck Protection for Producers Act
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.
Under current law, such farmers must calculate their paycheck protection loan amount based on net income.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7175 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7175
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 11, 2020
Mr. Kind (for himself, Mr. Thompson of Pennsylvania, Mr. Brindisi, and
Mr. Joyce of Pennsylvania) introduced the following bill; which was
referred to the Committee on Small Business
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Paycheck Protection for Producers
Act''.
SEC. 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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line