S.Amdt. 1408

1. Adds SEC. __. PPP AND SECOND DRAW LOANS FOR BUSINESSES THAT EXPERIENCED EXTREME HARDSHIP wherever appropriate

   Adds a section

   Inserted: SEC. __. PPP AND SECOND DRAW LOANS FOR BUSINESSES THAT EXPERIENCED EXTREME HARDSHIP.

   Inserted: (a) PPP.--Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) is amended--

   Inserted: (1) in subparagraph (E), in the matter preceding clause (i), by striking "subparagraph (V)" and inserting "subparagraphs (V) and (W)"; and

   Inserted: (2) by adding at the end the following:

   Inserted: "(W) Calculation of maximum loan amount for businesses that experienced extreme hardship.--

   Inserted: "(i) Definition.--In this subparagraph, the term 'extreme hardship' means, with respect to an eligible recipient applying for assistance under this paragraph--

   Inserted: "(I) except as provided in subclauses (II), (III), and (IV), that the eligible recipient had gross receipts during the first, second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter in 2020 that demonstrate not less than a 75 percent reduction from the gross receipts of the eligible recipient during the same quarter in 2019;

   Inserted: "(II) if the eligible recipient was not in business during the first or second quarter of 2019, but was in business during the third and fourth quarter of 2019, that the eligible recipient had gross receipts during the first, second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter of 2020 that demonstrate not less than a 75 percent reduction from the gross receipts of the eligible recipient during the third or fourth quarter of 2019;

   Inserted: "(III) if the eligible recipient was not in business during the first, second, or third quarter of 2019, but was in business during the fourth quarter of 2019, that the eligible recipient had gross receipts during the first, second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter of 2020 that demonstrate not less than a 75 percent reduction from the gross receipts of the eligible recipient during the fourth quarter of 2019; or

   Inserted: "(IV) if the eligible recipient was not in business during 2019, but was in operation on February 15, 2020, that the eligible recipient had gross receipts during the second, third, or, only with respect to an application submitted on or after January 1, 2021, fourth quarter of 2020 that demonstrate not less than a 75 percent reduction from the gross receipts of the eligible recipient during the first quarter of 2020.

   Inserted: "(ii) Maximum loan amount.--In calculating the maximum covered loan amount under subparagraph (E) with respect to an eligible recipient that experienced extreme hardship, subclauses (I)(aa)(BB) and (II)(aa)(BB), as applicable, of subparagraph (E)(i) shall be applied by substituting '3.5' for '2.5'.".

   Inserted: (b) Second Draw.--Section 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(37)) is amended--

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   Inserted: (1) in subparagraph (A)(i), by inserting " 'extreme hardship,' " after " 'eligible self-employed individual,' "; and

   Inserted: (2) in subparagraph (C), by adding at the end the following:

   Inserted: "(v) Extreme hardship.--In calculating the maximum loan amount under clause (i), (ii), or (iii) with respect to an eligible entity that experienced extreme hardship, clause (i)(I)(bb), (ii)(I)(bb), and (iii)(I)(bb), as applicable, shall be applied by substituting '3.5' for '2.5'.".

   Inserted: (c) Covered Period for Loan Forgiveness for Second Draw Loans.--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:

   Inserted: "(i) Definition of covered period.--In this subparagraph, the term 'covered period' means the period--

   Inserted: "(I) beginning on the date of the origination of a covered loan; and

   Inserted: "(II) ending on a date selected by the eligible recipient of the covered loan that occurs during the period--

   Inserted: "(aa) beginning on the date that is 8 weeks after such date of origination; and

   Inserted: "(bb) ending on the date that is 52 weeks after such date of origination.".

   Inserted: (d) Applicability.--The amendments made by this section shall apply--

   Inserted: (1) for the amendments made by subsections (a) and (b), with respect to an applicant for a loan under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)(37)) before, on, or after the date of enactment of this Act; and

   Inserted: (2) for the amendment made by subsection (c), with respect to an applicant for loan forgiveness under section 7(a)(37)(J) of that Act (15 U.S.C. 636(a)(37)(J)) that has not yet received the loan forgiveness.

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   Original wording

   At the appropriate place, insert the following:

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As printed