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Code · BILL · 116th Congress · S. 4321 (Introduced in Senate) — To establish the Paycheck Protection Program Second Draw Loan and amend the 7(a) loan guaranty program for recovery s... · Sec. 104

Sec. 104. Simplified application

651 words·~3 min read·/bill/116/s/4321/is/section-104

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Section 1106 of the CARES Act ( 15 U.S.C. 9005 ), as amended by section 103 of this Act, is amended— in subsection (e), in the matter preceding paragraph (1), by striking An eligible and inserting Except as provided in subsection (l), an eligible ; in subsection (f), by inserting or the information required under subsection (l), as applicable after subsection
(e); and by adding at the end the following: Notwithstanding subsection (e), with respect to a covered loan made to an eligible recipient that is not more than $150,000, the covered loan amount shall be forgiven under this section if the eligible recipient— signs and submits to the lender an attestation that the eligible recipient made a good faith effort to comply with the requirements under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ); and for the 3-year period following submission of the attestation under clause (i), retains records relevant to the attestation that prove compliance with those requirements. An eligible recipient of a covered loan described in subparagraph
(A)may complete and submit any form related to borrower demographic information. The Administrator may— review and audit covered loans described in subparagraph (A); and in the case of fraud, ineligibility, or other material noncompliance with applicable loan or loan forgiveness requirements, modify— the amount of a covered loan described in subparagraph (A); or the loan forgiveness amount with respect to a covered loan described in subparagraph (A). Notwithstanding subsection (e), with respect to a covered loan made to an eligible recipient that is more than $150,000 and not more than $2,000,000— the eligible recipient seeking loan forgiveness under this section— is not required to submit the supporting documentation described in paragraph
(1)or
(2)of subsection
(e)or the certification described in subsection (e)(3)(A); shall retain all relevant schedules, worksheets, and supporting documentation for the 3-year period following submission of the application for loan forgiveness; and may complete and submit any form related to borrower demographic information; review by the lender of an application submitted by the eligible recipient for loan forgiveness under this section shall be limited to whether the lender received a complete application, with all fields completed, initialed, or signed, as applicable; and the lender shall— accept the application submitted by the eligible recipient for loan forgiveness under this section; and submit the application to the Administrator. The Administrator may— review and audit covered loans described in subparagraph (A); and in the case of fraud, ineligibility, or other material noncompliance with applicable loan or loan forgiveness requirements, modify— the amount of a covered loan described in subparagraph (A); or the loan forgiveness amount with respect to a covered loan described in subparagraph (A). Not later than 30 days after the date of enactment of the Continuing Small Business Recovery and Paycheck Protection Program Act , the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an audit plan that details— the policies and procedures of the Administrator for conducting reviews and audits of covered loans; and the metrics that the Administrator shall use to determine which covered loans will be audited for each category of covered loans described in paragraphs
(1)and (2). Not later than 30 days after the date on which the Administrator submits the audit plan required under subparagraph (A), and each month thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the review and audit activities of the Administrator under this subsection, which shall include— the number of active reviews and audits; the number of reviews and audits that have been ongoing for more than 60 days; and any substantial changes made to the audit plan submitted under subparagraph (A). .
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Sec. 104
Simplified application
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