I 117TH CONGRESS 1ST SESSION H. R. 1589 To amend the Small Business Act to modify the exemption for re-hires for loan forgiveness under the paycheck protection program, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 3, 2021 Mr. ROSENDALE (for himself and Mr. DONALDS) introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to modify the exemption for re-hires for loan forgiveness under the paycheck pro- tection program, and for other purposes. 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 Loan Forgiveness Flexibility Act of 2021’’. 5 VerDate Sep 11 2014 22:20 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1589.IH H1589 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1589 IH SEC. 2. EXEMPTION FOR RE-HIRES FOR LOAN FORGIVE- 1 NESS UNDER THE PAYCHECK PROTECTION 2 PROGRAM. 3 (a) IN GENERAL.—Section 7A(d)(5) of the Small 4 Business Act (as redesignated, transferred, and amended 5 by section 304(b) of the Economic Aid to Hard-Hit Small 6 Businesses, Nonprofits, and Venues Act (Public Law 116– 7 260)) is amended— 8 (1) in subparagraph (B)(i)(II), by striking ‘‘not 9 later than’’ and all that follows through ‘‘covered 10 loan)’’ and inserting ‘‘not later than 90 days after 11 the termination date of all State or local COVID– 12 19 emergencies applicable to the location of the eligi- 13 ble entity, if such date occurs after disbursement of 14 the covered loan’’; 15 (2) in subparagraph (B)(ii)(II), by striking 16 ‘‘not later than’’ and all that follows through ‘‘cov- 17 ered loan)’’ and inserting ‘‘not later than 90 days 18 after the termination date of all State or local 19 COVID–19 emergencies applicable to the location of 20 the eligible entity, if such date occurs after disburse- 21 ment of the covered loan’’; and 22 (3) by adding at the end the following new sub- 23 paragraph: 24 ‘‘(C) STATE OR LOCAL COVID–19 EMER- 25 GENCY.—The term ‘State or local COVID–19 26 VerDate Sep 11 2014 22:20 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1589.IH H1589 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1589 IH emergency’ means a public health emergency 1 declared by a State or local government because 2 of the COVID–19 pandemic.’’. 3 (b) APPLICABILITY.— 4 (1) IN GENERAL.—Except as provided in para- 5 graph (2), the amendments made by subsection (a) 6 shall apply to any covered loan made pursuant to 7 section 7(a)(36) of the Small Business Act (15 8 U.S.C. 636(a)(36)) before, on, or after the date of 9 enactment of this Act, including forgiveness of such 10 a loan. 11 (2) EXCLUSION OF LOANS ALREADY FOR- 12 GIVEN.—The amendments made by subsection (a) 13 shall not apply to a loan made pursuant to section 14 7(a)(36) of the Small Business Act (15 U.S.C. 15 636(a)(36)) for which the borrower received forgive- 16 ness before the date of enactment of this Act. 17 Æ VerDate Sep 11 2014 22:20 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1589.IH H1589 kjohnson on DSK79L0C42PROD with BILLS