Paycheck Protection Program Flexibility Act Signed Into Law

H.R.7010 – Paycheck Protection Program Flexibility Act of 2020 (Full Text)

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7010 Enrolled Bill (ENR)]

        H.R.7010

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
            the third day of January, two thousand and twenty


                                 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.