    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 116-142
    116th Congress

    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)--

    [[Page 642]]

    (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

    [[Page 643]]

    (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.

    Approved June 5, 2020.

    LEGISLATIVE HISTORY--H.R. 7010:
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    CONGRESSIONAL RECORD, Vol. 166 (2020):
    May 28, considered and passed House.
    June 3, considered and passed Senate.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2020):
    June 5, Presidential statement.