S.Amdt. 1402
What it does: Adds SEC. ___. REVISIONS TO LOAN AMOUNT CALCULATION AND ELIGIBILITY wherever appropriate
Sen. James Lankford (R-OK)What it changes
1 change to H.R. 1799
Adds SEC. ___. REVISIONS TO LOAN AMOUNT CALCULATION AND ELIGIBILITY wherever appropriate
Adds a sectionInserted: SEC. ___. REVISIONS TO LOAN AMOUNT CALCULATION AND ELIGIBILITY.
Inserted: (a) Definitions.--In this section--
Inserted: (1) the term "covered loan" means a loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a));
Inserted: (2) the term "eligible applicant" means a taxpayer that files Internal Revenue Service Form 1040, Schedule C; and
Inserted: (3) the term "interim final rule" means the interim final rule of the Small Business Administration entitled "Business Loan Program Temporary Changes; Paycheck Protection Program -Revisions to Loan Amount Calculation and Eligibility", Docket Number SBA-2021-0010.
Inserted: (b) Calculation of Maximum Loan Amount for Certain Applicants.--
Inserted: (1) In general.--An eligible applicant applying for a covered loan may calculate the maximum amount of the covered loan using the gross income of the eligible applicant, as reported on the applicable Internal Revenue Service Form 1040, Schedule C filed by the eligible applicant.
Inserted: (2) Retroactive effect.--Notwithstanding any provision of the interim final rule, paragraph (1) shall apply with respect to any covered loan made to an eligible applicant that is approved on or after the date of enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260).
Inserted: (c) Recalculation.--
Inserted: (1) In general.--With respect to a covered loan made to an eligible applicant that was approved during the period beginning on the date of enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260) and ending on the day before the date of enactment of this Act, the eligible applicant may submit to the lender with respect to the covered loan a request to recalculate the amount of the covered loan based on the application of this section.
Inserted: (2) Supplemental payments.--If, after receiving a request from an eligible applicant under paragraph (1), the applicable lender determines that the amount of the applicable covered loan, because of the application of this section, would be greater than the amount of the covered loan originally made to the eligible applicant, the lender shall provide to the eligible applicant a payment that is equal to the difference between the amount of the covered loan originally made to the eligible applicant and the amount of the covered loan based on the application of this section.
The amendment doesn't say where this goes; the clerk decides.
Original wording
At the appropriate place, insert the following:
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As printed
SA 1402. Mr. LANKFORD submitted an amendment intended to be proposed by him to the bill H.R. 1799, to amend the Small Business Act and the CARES Act to extend the covered period for the paycheck protection program, and for other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. REVISIONS TO LOAN AMOUNT CALCULATION AND ELIGIBILITY.
(a) Definitions.--In this section--
(1) the term “covered loan” means a loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a));
(2) the term “eligible applicant” means a taxpayer that files Internal Revenue Service Form 1040, Schedule C; and
(3) the term “interim final rule” means the interim final rule of the Small Business Administration entitled “Business Loan Program Temporary Changes; Paycheck Protection Program -Revisions to Loan Amount Calculation and Eligibility”, Docket Number SBA-2021-0010.
(b) Calculation of Maximum Loan Amount for Certain Applicants.--
(1) In general.--An eligible applicant applying for a covered loan may calculate the maximum amount of the covered loan using the gross income of the eligible applicant, as reported on the applicable Internal Revenue Service Form 1040, Schedule C filed by the eligible applicant.
(2) Retroactive effect.--Notwithstanding any provision of the interim final rule, paragraph (1) shall apply with respect to any covered loan made to an eligible applicant that is approved on or after the date of enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260).
(c) Recalculation.--
(1) In general.--With respect to a covered loan made to an eligible applicant that was approved during the period beginning on the date of enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260) and ending on the day before the date of enactment of this Act, the eligible applicant may submit to the lender with respect to the covered loan a request to recalculate the amount of the covered loan based on the application of this section.
(2) Supplemental payments.--If, after receiving a request from an eligible applicant under paragraph (1), the applicable lender determines that the amount of the applicable covered loan, because of the application of this section, would be greater than the amount of the covered loan originally made to the eligible applicant, the lender shall provide to the eligible applicant a payment that is equal to the difference between the amount of the covered loan originally made to the eligible applicant and the amount of the covered loan based on the application of this section.
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Senate amendment submitted
March 24, 2021