[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7010 Received in Senate (RDS)]
<DOC>
116th CONGRESS
2d Session
H. R. 7010
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 1, 2020
Received
_______________________________________________________________________
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:
CHERYL L. JOHNSON,
Clerk.