Introduced (House) — Paycheck Protection Program Flexibility Act of 2020

Record facts

Summary

H. R. 7010, the Paycheck Protection Program Flexibility Act of 2020, as introduced in the House of Representatives on May 26, 2020 in the 116th Congress, 2d Session, and referred to the Committee on Small Business and the Committee on Ways and Means. The bill would amend the Small Business Act and the CARES Act to modify loan forgiveness under the paycheck protection program and allow forgiveness recipients to defer payroll taxes. Section 2 adds a minimum maturity of 5 years for loans with a remaining balance, and Section 3 replaces a covered-period date with December 31, 2020, sets the covered period to end 24 weeks after origination or December 31, 2020, and adds an exemption based on employee availability. Section 4 amends Section 2302(a) of the CARES Act on payroll tax deferral, and Section 5 makes the amendments effective as if included in the CARES Act.

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Full text

I 
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 protec-
tion 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. BRIN-
DISI, 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 consider-
ation 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 protec-
tion program to defer payroll taxes, and for other pur-
poses. 
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2 
•HR 7010 IH
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled, 
2
SECTION 1. SHORT TITLE. 
3
This Act may be cited as the ‘‘Paycheck Protection 
4
Program Flexibility Act of 2020’’. 
5
SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE 
6
AFTER APPLICATION OF FORGIVENESS. 
7
Section 7(a)(36)(K)(ii) of the Small Business Act (15 
8
U.S.C. 636(a)(36)) is amended by inserting ‘‘minimum 
9
maturity of 5 years and a’’ before ‘‘maximum maturity’’. 
10
SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO-
11
GRAM LOAN FORGIVENESS. 
12
(a) EXTENSION
OF
COVERED
PERIOD.—Section 
13
7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C. 
14
636(a)(36)(A)(iii)) is amended by striking ‘‘June 30, 
15
2020’’ and inserting ‘‘December 31, 2020’’. 
16
(b) FORGIVENESS.—Section 1106 of the CARES Act 
17
(Public Law 116–136) is amended— 
18
(1) in subsection (a), by striking paragraph (3) 
19
and inserting the following: 
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‘‘(3) the term ‘covered period’ means, subject to 
21
subsection (l), the period beginning on the date of 
22
the origination of a covered loan and ending the ear-
23
lier of— 
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3 
•HR 7010 IH
‘‘(A) the date that is 24 weeks after such 
1
date of origination; or 
2
‘‘(B) December 31, 2020;’’; 
3
(2) in subsection (d)— 
4
(A) in paragraph (5)(B), by striking ‘‘June 
5
30, 2020’’ each place it appears and inserting 
6
‘‘December 31, 2020’’; and 
7
(B) by adding at the end the following new 
8
paragraphs: 
9
‘‘(7) EXEMPTION BASED ON EMPLOYEE AVAIL-
10
ABILITY.—During the period beginning on February 
11
15, 2020, and ending on December 31, 2020, the 
12
amount of loan forgiveness under this section shall 
13
be determined without regard to a reduction in the 
14
number of full-time equivalent employees if an eligi-
15
ble recipient— 
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‘‘(A) is unable to rehire an individual who 
17
was an employee of the eligible recipient on or 
18
before February 15, 2020; 
19
‘‘(B) is able to demonstrate an inability to 
20
hire similarly qualified employees on or before 
21
December 31, 2020; or 
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‘‘(C) is able to demonstrate an inability to 
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return to the same level of business activity as 
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•HR 7010 IH
such business was operating at prior to Feb-
1
ruary 15, 2020. 
2
‘‘(8) NO
LIMITATIONS.—In carrying out this 
3
section, the Administrator may not limit the non- 
4
payroll portion of a forgivable covered loan 
5
amount.’’; and 
6
(3) by adding at the end the following new sub-
7
section: 
8
‘‘(l) APPLICATION TO CERTAIN ELIGIBLE RECIPI-
9
ENTS.—An eligible recipient that received a covered loan 
10
before the date of enactment of this subsection may elect 
11
for the covered period applicable to such covered loan to 
12
end on the date that is 8 weeks after the date of the origi-
13
nation of such covered loan.’’. 
14
SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL 
15
TAXES. 
16
Section 2302(a) of the CARES Act (Public Law 116– 
17
136) is amended by striking paragraph (3). 
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SEC. 5. EFFECTIVE DATE; APPLICABILITY. 
19
The amendments made by this Act shall be effective 
20
as if included in the CARES Act (Public Law 116–136) 
21
and shall apply to any loan made pursuant to section 
22
7(a)(36) of the Small Business Act (15 U.S.C. 
23
636(a)(36)) or section 1109 of the CARES Act. 
24
Æ 
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