Paycheck Protection Program Flexibility Act of 2020

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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 18:43 May 21, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6886.IH H6886 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 6886 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Paycheck Protection 2 Program Flexibility Act of 2020’’. 3 SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE 4 AFTER APPLICATION OF FORGIVENESS. 5 Section 7(a)(36)(K)(ii) of the Small Business Act (15 6 U.S.C. 636(a)(36)) is amended by inserting ‘‘minimum 7 maturity of 5 years and a’’ before ‘‘maximum maturity’’. 8 SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO- 9 GRAM LOAN FORGIVENESS. 10 Section 1106 of the CARES Act (Public Law 116– 11 136) is amended— 12 (1) in subsection (a), by striking paragraph (3) 13 and inserting the following: 14 ‘‘(3) the term ‘covered period’ means the period 15 beginning on the date of the origination of a covered 16 loan and ending on the earlier of— 17 ‘‘(A) the date that is 24 weeks after such 18 date of origination; or 19 ‘‘(B) December 31, 2020;’’; and 20 (2) in subsection (d)— 21 (A) in paragraph (5)(B), by striking ‘‘June 22 30, 2020’’ each place it appears and inserting 23 ‘‘December 31, 2020’’; and 24 (B) by adding at the end the following new 25 paragraphs: 26 VerDate Sep 11 2014 18:43 May 21, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6886.IH H6886 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 6886 IH ‘‘(7) EXEMPTION BASED ON EMPLOYEE AVAIL- 1 ABILITY.—During the period beginning on February 2 15, 2020, and ending on December 31, 2020, the 3 amount of loan forgiveness under this section shall 4 be determined without regard to a reduction in the 5 number of full-time equivalent employees if an eligi- 6 ble recipient— 7 ‘‘(A) is unable to rehire an individual who 8 was an employee of the eligible recipient on or 9 before February 15, 2020; or 10 ‘‘(B) is able to demonstrate an inability to 11 hire similarly qualified employees on or before 12 December 31, 2020. 13 ‘‘(8) NO LIMITATIONS.—In carrying out this 14 section, the Administrator may not limit the non- 15 payroll portion of a forgivable covered loan 16 amount.’’. 17 SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL 18 TAXES. 19 Section 2302(a) of the CARES Act (Public Law 116– 20 136) is amended by striking paragraph (3). 21 SEC. 5. EFFECTIVE DATE; APPLICABILITY. 22 The amendments made by this Act shall be effective 23 as if included in the CARES Act (Public Law 116–136) 24 and shall apply to any loan made pursuant to section 25 VerDate Sep 11 2014 18:43 May 21, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6886.IH H6886 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 6886 IH 7(a)(36) of the Small Business Act (15 U.S.C. 1 636(a)(36)) or section 1109 of the CARES Act. 2 Æ VerDate Sep 11 2014 18:43 May 21, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H6886.IH H6886 pamtmann on DSKBC07HB2PROD with BILLS