[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7010 Engrossed in House (EH)]

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116th CONGRESS
  2d Session
                                H. R. 7010

_______________________________________________________________________

                                 AN ACT


 
  To amend the Small Business Act and the CARES Act to modify certain 
   provisions related to the forgiveness of loans under the paycheck 
 protection program, to allow recipients of loan forgiveness under the 
   paycheck protection program to defer payroll taxes, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Paycheck Protection Program 
Flexibility Act of 2020''.

SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE AFTER APPLICATION OF 
              FORGIVENESS.

    (a) In General.--Section 7(a)(36)(K)(ii) of the Small Business Act 
(15 U.S.C. 636(a)(36)) is amended by inserting ``minimum maturity of 5 
years and a'' before ``maximum maturity''.
    (b) Effective Date; Applicability.--The amendment made by this 
section shall take effect on the date of the enactment of this Act 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)) on or after such date. Nothing in 
this Act, the CARES Act (Public Law 116-136), or the Paycheck 
Protection Program and Health Care Enhancement Act (Public Law 116-139) 
shall be construed to prohibit lenders and borrowers from mutually 
agreeing to modify the maturity terms of a covered loan described in 
subparagraph (K) of such section to conform with requirements of this 
section.

SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS.

    (a) Extension of Covered Period.--Section 7(a)(36)(A)(iii) of the 
Small Business Act (15 U.S.C. 636(a)(36)(A)(iii)) is amended by 
striking ``June 30, 2020'' and inserting ``December 31, 2020''.
    (b) Forgiveness.--Section 1106 of the CARES Act (Public Law 116-
136) is amended--
            (1) in subsection (a), by striking paragraph (3) and 
        inserting the following:
            ``(3) the term `covered period' means, subject to 
        subsection (l), the period beginning on the date of the 
        origination of a covered loan and ending the earlier of--
                    ``(A) the date that is 24 weeks after such date of 
                origination; or
                    ``(B) December 31, 2020;'';
            (2) in subsection (d)--
                    (A) in paragraph (5)(B), by striking ``June 30, 
                2020'' each place it appears and inserting ``December 
                31, 2020''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(7) Exemption based on employee availability.--During the 
        period beginning on February 15, 2020, and ending on December 
        31, 2020, the amount of loan forgiveness under this section 
        shall be determined without regard to a proportional reduction 
        in the number of full-time equivalent employees if an eligible 
        recipient, in good faith--
                    ``(A) is able to document--
                            ``(i) an inability to rehire individuals 
                        who were employees of the eligible recipient on 
                        February 15, 2020; and
                            ``(ii) an inability to hire similarly 
                        qualified employees for unfilled positions on 
                        or before December 31, 2020; or
                    ``(B) is able to document an inability to return to 
                the same level of business activity as such business 
                was operating at before February 15, 2020, due to 
                compliance with requirements established or guidance 
                issued by the Secretary of Health and Human Services, 
                the Director of the Centers for Disease Control and 
                Prevention, or the Occupational Safety and Health 
                Administration during the period beginning on March 1, 
                2020, and ending December 31, 2020, related to the 
                maintenance of standards for sanitation, social 
                distancing, or any other worker or customer safety 
                requirement related to COVID-19.
            ``(8) Limitation on forgiveness.--To receive loan 
        forgiveness under this section, an eligible recipient shall use 
        at least 60 percent of the covered loan amount for payroll 
        costs, and may use up to 40 percent of such amount for any 
        payment of interest on any covered mortgage obligation (which 
        shall not include any prepayment of or payment of principal on 
        a covered mortgage obligation), any payment on any covered rent 
        obligation, or any covered utility payment.''; and
            (3) by adding at the end the following new subsection:
    ``(l) Application to Certain Eligible Recipients.--An eligible 
recipient that received a covered loan before the date of enactment of 
this subsection may elect for the covered period applicable to such 
covered loan to end on the date that is 8 weeks after the date of the 
origination of such covered loan.''.
    (c) Extension of Deferral Period.--Section 7(a)(36)(M) of the Small 
Business Act (15 U.S.C. 636(a)(36)(M)) is amended--
            (1) in clause (ii)(II), by striking ``for a period of not 
        less than 6 months, including payment of principal, interest, 
        and fees, and not more than 1 year.'' and inserting the 
        following: ``, including payment of principal, interest, and 
        fees, until the date on which the amount of forgiveness 
        determined under section 1106 of the CARES Act is remitted to 
        the lender.'';
            (2) in clause (iii), by striking ``for a period of not less 
        than 6 months, including payment of principal, interest, and 
        fees, and not more than 1 year.'' and inserting the following: 
        ``, including payment of principal, interest, and fees, until 
        the date on which the amount of forgiveness determined under 
        section 1106 of the CARES Act is remitted to the lender.''; and
            (3) by adding at the end the following new clause:
                            ``(v) Rule of construction.--If an eligible 
                        recipient fails to apply for forgiveness of a 
                        covered loan within 10 months after the last 
                        day of the covered period defined in section 
                        1106(a) of the CARES Act, such eligible 
                        recipient shall make payments of principal, 
                        interest, and fees on such covered loan 
                        beginning on the day that is not earlier than 
                        the date that is 10 months after the last day 
                        of such covered period.''.
    (d) Effective Date; Applicability.--The amendments made by this 
section shall be effective as if included in the CARES Act (Public Law 
116-136) 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)) or section 1109 of the 
CARES Act.

SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL TAXES.

    (a) In General.--Section 2302(a) of the CARES Act (Public Law 116-
136) is amended by striking paragraph (3).
    (b) Effective Date; Applicability.--The amendments made by this 
section shall be effective as if included in the CARES Act (Public Law 
116-136) 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)) or section 1109 of the 
CARES Act.

SEC. 5. EMERGENCY DESIGNATION.

    (a) In General.--This Act is designated as an emergency requirement 
pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 
U.S.C. 933(g)).
    (b) Designation in Senate.--In the Senate, this Act is designated 
as an emergency requirement pursuant to section 4112(a) of H. Con. Res. 
71 (115th Congress), the concurrent resolution on the budget for fiscal 
year 2018.

            Passed the House of Representatives May 28, 2020.

            Attest:

                                                                 Clerk.
116th CONGRESS

  2d Session

                               H. R. 7010

_______________________________________________________________________

                                 AN ACT

  To amend the Small Business Act and the CARES Act to modify certain 
   provisions related to the forgiveness of loans under the paycheck 
 protection program, to allow recipients of loan forgiveness under the 
   paycheck protection program to defer payroll taxes, and for other 
                               purposes.