APPLICABLE PERIODS FOR PRORATION.

SEC. 344. APPLICABLE PERIODS FOR PRORATION. Section 7(a)(36)(A)(viii) of the Small Business Act (15 U.S.C. 636(a)(36)(A)(viii)) is amended— (1) in subclause (I)(bb), by striking “in 1 year, as prorated for the covered period” and inserting “on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred”; and (2) in subclause (II)— (A) in item (aa), by striking “an annual salary of $100,000, as prorated for the covered period” and inserting “ $100,000 on an annualized basis, as prorated for the period during which the compensation is paid or the obligation to pay the compensation is incurred”; and (B) in item (bb), by striking “covered” and inserting “applicable”.