S. 3805, Paycheck Protection Program Flexibility Act of 2020
Summary
S. 3805 was introduced in the Senate on May 21, 2020, by King for himself, Daines, Kaine, Tillis, Stabenow, and Gardner, and referred to the Committee on Finance. It may be cited as the Paycheck Protection Program Flexibility Act of 2020. Section 3 amends section 7(a)(36)(A)(iii) of the Small Business Act to extend the covered period to December 31, 2020. It also adds an exemption from reductions in full-time equivalent employees for loan forgiveness if an eligible recipient is unable to rehire an individual who was an employee on or before February 15, 2020. Section 4 amends section 2302(a) of the CARES Act by striking paragraph (3).
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Cite this document
“S. 3805, Paycheck Protection Program Flexibility Act of 2020.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s3805is-bills-116s3805is/
, SHA-256 0136d09e4238ac620f729a5b7275a27136b6249cfe9a965733b47a96e4ef7e62.Full text
II
116TH CONGRESS
2D SESSION
S. 3805
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 SENATE OF THE UNITED STATES
MAY 21, 2020
Mr. KING (for himself, Mr. DAINES, Mr. KAINE, Mr. TILLIS, Ms. STABENOW,
and Mr. GARDNER) introduced the following bill; which was read twice
and referred to the Committee on Finance
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,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Paycheck Protection
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5 Program Flexibility Act of 2020’’.
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1 SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE
2 AFTER APPLICATION OF FORGIVENESS.
3 Section 7(a)(36)(K)(ii) of the Small Business Act (15
4 U.S.C. 636(a)(36)(K)(ii)) is amended by inserting ‘‘min-
5 imum maturity of 5 years and a’’ before ‘‘maximum matu-
6 rity’’.
7 SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO-
8 GRAM LOAN FORGIVENESS.
9 (a) EXTENSION OF COVERED PERIOD.—Section
10 7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C.
11 636(a)(36)(A)(iii)) is amended by striking ‘‘June 30,
12 2020’’ and inserting ‘‘December 31, 2020’’.
13 (b) FORGIVENESS.—Section 1106 of the CARES Act
14 (Public Law 116–136) is amended—
15 (1) in subsection (a), by striking paragraph (3)
16 and inserting the following:
17 ‘‘(3) the term ‘covered period’ means, subject to
18 subsection (l), the period beginning on the date of
19 the origination of a covered loan and ending the ear-
20 lier of—
21 ‘‘(A) the date that is 24 weeks after such
22 date of origination; or
23 ‘‘(B) December 31, 2020;’’;
24 (2) in subsection (d)—
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1 (A) in paragraph (5)(B), by striking ‘‘June
2 30, 2020’’ each place it appears and inserting
3 ‘‘December 31, 2020’’; and
4 (B) by adding at the end the following:
5 ‘‘(7) EXEMPTION BASED ON EMPLOYEE AVAIL-
6 ABILITY.—During the period beginning on February
7 15, 2020, and ending on December 31, 2020, the
8 amount of loan forgiveness under this section shall
9 be determined without regard to a reduction in the
10 number of full-time equivalent employees if an eligi-
11 ble recipient—
12 ‘‘(A) is unable to rehire an individual who
13 was an employee of the eligible recipient on or
14 before February 15, 2020;
15 ‘‘(B) is able to demonstrate an inability to
16 hire similarly qualified employees on or before
17 December 31, 2020; or
18 ‘‘(C) is able to demonstrate an inability to
19 return to the same level of business activity as
20 the eligible recipient was operating at before
21 February 15, 2020.
22 ‘‘(8) NO LIMITATIONS.—In carrying out this
23 section, the Administrator may not limit the non-
24 payroll portion of a forgivable covered loan
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25 amount;’’; and
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1 (3) by adding at the end the following new sub-
2 section:
3 ‘‘(l) APPLICATION TO CERTAIN ELIGIBLE RECIPI-
4 ENTS.—An eligible recipient that received a covered loan
5 before the date of enactment of this subsection may elect
6 for the covered period applicable to such covered loan to
7 end on the date that is 8 weeks after the date of the origi-
8 nation of such covered loan.’’.
9 SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL
10 TAXES.
11 Section 2302(a) of the CARES Act (Public Law 116–
12 136) is amended by striking paragraph (3).
13 SEC. 5. EFFECTIVE DATE; APPLICABILITY.
14 The amendments made by this Act shall be effective
15 as if included in the CARES Act (Public Law 116–136)
16 and shall apply to any loan made pursuant to section
17 7(a)(36) of the Small Business Act (15 U.S.C.
18 636(a)(36)) or section 1109 of the CARES Act (Public
19 Law 116–136).
Æ
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