Section 1 Short title
This Act may be cited as the “Small-Dollar PPP Forgiveness Simplification Act of 2021”.
Small-Dollar PPP Forgiveness Simplification Act of 2021
A BILL
To amend the Small Business Act to include excess loan amount errors in the forgiveness of a paycheck protection program loan, and for other purposes.
Sec. 2 Simplified application for covered loans up to $350,000
in paragraph (1)—
in the paragraph heading, by striking “$150,000” and inserting “$350,000”; and
by striking “not more than $150,000” each place it appears and inserting “less than or equal to $350,000”; and
in paragraph (2)—
in the paragraph heading, by striking “$150,000” and inserting “$350,000”; and
in subparagraph (A), by striking “$150,000” and inserting “$350,000”.
Effective date— The amendment made by this subsection shall be effective as if included in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Public Law 116–260; 134 Stat. 1993) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act, including forgiveness of such a loan.
Sec. 3 Forgiveness of excess loan amounts for paycheck protection program loans
Paycheck protection program loans—
In general— Section 7A(a)(1) of the Small Business Act (15 U.S.C. 636m(a)(1)) is amended by inserting before the semicolon at the end the following: “and includes any amount of a covered loan received due to an excess loan amount error (as described in Procedural Notice 5000–20078 of the Administration titled “Paycheck Protection Program Excess Loan Amount Errors” and dated January 15, 2021)”.
Conforming amendment— Section 7A(l)(1)(A)(ii)(II) of the Small Business Act is amended by striking “complied” and inserting “acted in good faith to comply”.
Effective date— The amendments made by this subsection shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act, including forgiveness of such a loan.
Applicability to loans already forgiven— The amendments made by this subsection shall apply to a loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) for which the borrower received forgiveness before the date of enactment of this Act under section 1106 of the CARES Act, as in effect on the day before the date of the enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Public Law 116–260; 134 Stat. 1993), or section 7A of the Small Business Act (15 U.S.C. 636m), as in effect on the day before the date of enactment of this Act.
Paycheck protection program second draw loans—
In general— 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:
“(i) Definitions—In this subparagraph—
“(I) the term covered loan includes any amount of a covered loan received due to an excess loan amount error (as described in Procedural Notice 5000–20078 of the Administration titled “Paycheck Protection Program Excess Loan Amount Errors” and dated January 15, 2021); and
“(II) the term covered period has the meaning given that term in section 7A(a).”
Effective date— The amendment made by this subsection shall be effective as if included in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Public Law 116–260; 134 Stat. 1993) and shall apply to any loan made pursuant to section 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(37)) before, on, or after the date of enactment of this Act, including forgiveness of such a loan.
Applicability to loans already forgiven— The amendment made by this subsection shall apply to a loan made pursuant to section 7(a)(37) of the Small Business Act (15 U.S.C. 636(a)(37)) for which the borrower received forgiveness before the date of enactment of this Act.