1. Short title
This Act may be cited as the “Paycheck Protection Program Second Chance Act”.
Paycheck Protection Program Second Chance Act
A BILL
To provide for the treatment of certain criminal violations under the paycheck protection program, and for other purposes.
2. Treatment of certain criminal violations under the paycheck protection program
In general— Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) is amended by adding at the end the following:
“(T) Treatment of certain criminal violations
“(i) Arrests or convictions—Except as provided in clause (ii), an entity that is a business, organization, cooperative, or enterprise shall be an eligible recipient notwithstanding an arrest or conviction under Federal, State, or Tribal law of an owner of not less than 20 percent of the equity of the entity, unless the owner is incarcerated on the date on which the entity applies for a covered loan.
“(ii) Financial fraud or deception—Notwithstanding clause (i), an entity that is a business, organization, cooperative, or enterprise may not receive a covered loan if, during the 5-year period preceding the date on which the entity applies for a covered loan, an owner of not less than 20 percent of the equity of the entity has been convicted of a felony of financial fraud or deception under Federal, State, or Tribal law.
“(iii) Waiver—The Administrator may waive the requirements under clause (ii).”
Rulemaking— Not later than 15 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall make necessary revisions to any rules of the Administration to carry out the amendment made by subsection (a).