PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act
This bill makes various changes to the Paycheck Protection Program (PPP) with respect to certain loans, loan applicants, and loan recipients.
First, the bill permits farming partnerships with gross farming income from self-employment to request a recalculation of the amount of their PPP loans based on the partners' distributive shares of gross income from the partnership. The recalculation is available retroactively for loans made on or before the date of enactment of this bill.
Additionally, applicants for PPP loans may calculate their maximum loan amount based on the applicant's Internal Revenue Service Form 1040, Schedule C (i.e., profit or loss from a business). This applies retroactively to PPP loans made or approved on or before December 27, 2020.
The bill also increases the maximum amount of a second draw PPP loan for individuals who received PPP loan forgiveness. The maximum second draw PPP loan amount for an eligible individual includes the increased PPP loan amount the individual would have received under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act had the individual not already received loan forgiveness. This applies retroactively to second draw loans made on for before the date of enactment of this bill.
The bill changes from a quarterly period to any contiguous 90-day period the calculation of revenue loss in determining eligibility for a second draw PPP loan.
The bill also extends certain dates with respect to the administration of the PPP.