H.R. 6886, Paycheck Protection Program Flexibility Act of 2020
Summary
H.R. 6886, the Paycheck Protection Program Flexibility Act of 2020, is a bill introduced in the House of Representatives on May 15, 2020 by Mr. Roy and referred to the Committee on Small Business, and in addition to the Committee on Ways and Means. Its stated purpose is to modify certain provisions related to the forgiveness of loans under the paycheck protection program and to allow recipients of loan forgiveness to defer payroll taxes. Section 3 amends section 1106 of the CARES Act so that the covered period ends on the earlier of the date that is 24 weeks after the date of origination or December 31, 2020. The amendments apply to any loan made pursuant to section 7(a)(36) of the Small Business Act or section 1109 of the CARES Act.
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Cite this document
“H.R. 6886, Paycheck Protection Program Flexibility Act of 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr6886ih-bills-116hr6886ih/
, SHA-256 4c7933b4701d3d807546b84caafd5998223864b3120d438f3bb03a1fdc88863d.Full text
I
116TH CONGRESS
2D SESSION
H. R. 6886
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 15, 2020
Mr. ROY (for himself, Mr. PHILLIPS, Mr. EMMER, and Mr. UPTON) intro-
duced 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 com-
mittee 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.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.
2 This Act may be cited as the ‘‘Paycheck Protection
3 Program Flexibility Act of 2020’’.
4 SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE
5 AFTER APPLICATION OF FORGIVENESS.
6 Section 7(a)(36)(K)(ii) of the Small Business Act (15
7 U.S.C. 636(a)(36)) is amended by inserting ‘‘minimum
8 maturity of 5 years and a’’ before ‘‘maximum maturity’’.
9 SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO-
10 GRAM LOAN FORGIVENESS.
11 Section 1106 of the CARES Act (Public Law 116–
12 136) is amended—
13 (1) in subsection (a), by striking paragraph (3)
14 and inserting the following:
15 ‘‘(3) the term ‘covered period’ means the period
16 beginning on the date of the origination of a covered
17 loan and ending on the earlier of—
18 ‘‘(A) the date that is 24 weeks after such
19 date of origination; or
20 ‘‘(B) December 31, 2020;’’; and
21 (2) in subsection (d)—
22 (A) in paragraph (5)(B), by striking ‘‘June
23 30, 2020’’ each place it appears and inserting
24 ‘‘December 31, 2020’’; and
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25 (B) by adding at the end the following new
26 paragraphs:
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1 ‘‘(7) EXEMPTION BASED ON EMPLOYEE AVAIL-
2 ABILITY.—During the period beginning on February
3 15, 2020, and ending on December 31, 2020, the
4 amount of loan forgiveness under this section shall
5 be determined without regard to a reduction in the
6 number of full-time equivalent employees if an eligi-
7 ble recipient—
8 ‘‘(A) is unable to rehire an individual who
9 was an employee of the eligible recipient on or
10 before February 15, 2020; or
11 ‘‘(B) is able to demonstrate an inability to
12 hire similarly qualified employees on or before
13 December 31, 2020.
14 ‘‘(8) NO LIMITATIONS.—In carrying out this
15 section, the Administrator may not limit the non-
16 payroll portion of a forgivable covered loan
17 amount.’’.
18 SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL
19 TAXES.
20 Section 2302(a) of the CARES Act (Public Law 116–
21 136) is amended by striking paragraph (3).
22 SEC. 5. EFFECTIVE DATE; APPLICABILITY.
23 The amendments made by this Act shall be effective
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24 as if included in the CARES Act (Public Law 116–136)
25 and shall apply to any loan made pursuant to section
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1 7(a)(36) of the Small Business Act (15 U.S.C.
2 636(a)(36)) or section 1109 of the CARES Act.
Æ
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