[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7010 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7010
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 26, 2020
Mr. Phillips (for himself, Mr. Roy, Mr. Upton, Mr. Fitzpatrick, Mr.
Rouda, Mr. Harris, Mr. Kildee, Ms. Schrier, Mr. Welch, Mr. Brindisi,
Mr. Pappas, Mrs. Walorski, Ms. Meng, Mr. Joyce of Ohio, Ms. Torres
Small of New Mexico, Mr. Bergman, Mr. Schweikert, Mr. LaMalfa, Mr.
Krishnamoorthi, Mr. Bera, Ms. Herrera Beutler, Mr. Van Drew, Miss Rice
of New York, Mr. Dunn, Mr. O'Halleran, Ms. Castor of Florida, Mr.
Deutch, Ms. Stefanik, Mr. Ryan, Ms. McCollum, Mr. Courtney, Mr. Kilmer,
Mr. Joyce of Pennsylvania, Mr. Wright, Mr. King of New York, and Mr.
Curtis) introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committee on Ways
and Means, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
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.
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''.
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 reduction in the number
of full-time equivalent employees if an eligible recipient--
``(A) is unable to rehire an individual who was an
employee of the eligible recipient on or before
February 15, 2020;
``(B) is able to demonstrate an inability to hire
similarly qualified employees on or before December 31,
2020; or
``(C) is able to demonstrate an inability to return
to the same level of business activity as such business
was operating at prior to February 15, 2020.
``(8) No limitations.--In carrying out this section, the
Administrator may not limit the non-payroll portion of a
forgivable covered loan amount.''; 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.''.
SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL TAXES.
Section 2302(a) of the CARES Act (Public Law 116-136) is amended by
striking paragraph (3).
SEC. 5. EFFECTIVE DATE; APPLICABILITY.
The amendments made by this Act 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.
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