Paycheck Protection Program Extension Act

II Calendar No. 454 116TH CONGRESS 2D SESSION S. 3833 To extend the loan forgiveness period for the paycheck protection program, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 21, 2020 Mr. RUBIO (for himself, Mr. CARDIN, Ms. COLLINS, Mrs. SHAHEEN, Mr. DURBIN, Mr. GARDNER, Mr. DAINES, Mr. TILLIS, Mr. BRAUN, and Mrs. BLACKBURN) introduced the following bill; which was read the first time JUNE 1, 2020 Read the second time and placed on the calendar A BILL To extend the loan forgiveness period for the paycheck protection 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 Extension Act’’. 5 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3833 PCS SEC. 2. AMENDMENTS TO THE PAYCHECK PROTECTION 1 PROGRAM AND LOAN FORGIVENESS. 2 (a) COVERED PERIOD AND ALLOWABLE USES FOR 3 LOANS.—Section 7(a)(36) of the Small Business Act (15 4 U.S.C. 636(a)(36)) is amended— 5 (1) in subparagraph (A)(iii), by striking ‘‘June 6 30, 2020’’ and inserting ‘‘December 31, 2020’’; and 7 (2) in subparagraph (F)— 8 (A) in subclause (VI), by striking ‘‘and’’ at 9 the end; 10 (B) in subclause (VII), by striking the pe- 11 riod at the end and inserting ‘‘; and’’; and 12 (C) by adding at the end the following: 13 ‘‘(VIII) covered worker protection 14 expenditures, as defined in section 15 1106(a) of the CARES Act (Public 16 Law 116–136).’’; 17 (b) LOAN FORGIVENESS.—Section 1106 of the 18 CARES Act (Public Law 116–136) is amended— 19 (1) in subsection (a)— 20 (A) in paragraph (3), by striking ‘‘8-week’’ 21 and inserting ‘‘16-week’’; 22 (B) by redesignating paragraphs (6), (7), 23 and (8) as paragraphs (7), (8) and (9), respec- 24 tively; 25 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3833 PCS (C) by inserting after paragraph (5) the 1 following: 2 ‘‘(6) the term ‘covered worker protection ex- 3 penditure’— 4 ‘‘(A) means an operating or a capital ex- 5 penditure, as determined in accordance with 6 generally accepted accounting principles, that is 7 required to facilitate the adaptation of the busi- 8 ness activities of an eligible recipient to comply 9 with requirements established or guidance 10 issued by the Department of Health and 11 Human Services, the Centers for Disease Con- 12 trol, or the Occupational Safety and Health Ad- 13 ministration during the period beginning on 14 March 1, 2020 and ending December 31, 2020 15 related to the maintenance of standards for 16 sanitation, social distancing, or any other work- 17 er or customer safety requirement related to 18 COVID–19; 19 ‘‘(B) may include— 20 ‘‘(i) the purchase, maintenance, or 21 renovation of assets that create or ex- 22 pand— 23 ‘‘(I) a drive-through window fa- 24 cility; 25 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3833 PCS ‘‘(II) an indoor, outdoor, or com- 1 bined air or air pressure ventilation or 2 filtration system; 3 ‘‘(III) a physical barrier such as 4 a sneeze guard; 5 ‘‘(IV) an indoor, outdoor, or com- 6 bined commercial real property; 7 ‘‘(V) an onsite or offsite health 8 screening capability; or 9 ‘‘(VI) other assets relating to the 10 compliance with the requirements or 11 guidance described in subparagraph 12 (A), as determined by the Adminis- 13 trator in consultation with the Sec- 14 retary of Health and Human Services 15 and the Secretary of Labor; and 16 ‘‘(ii) the purchase of— 17 ‘‘(I) covered materials described 18 in section 328.103(a) of title 44, Code 19 of Federal Regulations, or any suc- 20 cessor regulation; 21 ‘‘(II) particulate filtering face- 22 piece respirators approved by the Na- 23 tional Institute for Occupational Safe- 24 ty and Health, including those ap- 25 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3833 PCS proved only for emergency use author- 1 ization; or 2 ‘‘(III) other kinds of personal 3 protective equipment, as determined 4 by the Administrator in consultation 5 with the Secretary of Health and 6 Human Services and the Secretary of 7 Labor; and 8 ‘‘(C) does not include residential real prop- 9 erty or intangible property.’’; and 10 (D) in paragraph (8), as so redesignated— 11 (i) in subparagraph (C), by striking 12 ‘‘and’’ at the end; and 13 (ii) by adding at the end the fol- 14 lowing: 15 ‘‘(E) covered worker protection expendi- 16 tures; and’’; 17 (2) in subsection (b), by adding at the end the 18 following: 19 ‘‘(5) Any covered worker protection expendi- 20 ture.’’; 21 (3) in subsection (d)— 22 (A) in paragraph (5)(B)— 23 (i) by striking ‘‘date of enactment of 24 this Act’’ each place that term appears and 25 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 3833 PCS inserting ‘‘date of enactment of the Pay- 1 check Protection Program Extension Act’’; 2 and 3 (ii) by striking ‘‘June 30, 2020’’ each 4 place that term appears and inserting ‘‘the 5 date that is 16 weeks after the date of the 6 origination of the covered loan’’; 7 (B) by redesignating paragraph (6) as 8 paragraph (7); and 9 (C) by inserting after paragraph (5) the 10 following: 11 ‘‘(6) HOLD HARMLESS.— 12 ‘‘(A) IN GENERAL.—The amount of loan 13 forgiveness under this section received by an eli- 14 gible recipient of a covered loan shall not be re- 15 duced because of a reduction in number of em- 16 ployees described in paragraph (2) or a reduc- 17 tion relating to salary and wages described in 18 paragraph (3) that occurs outside of the 8-week 19 safe harbor period of the eligible recipient de- 20 scribed in subparagraph (B). 21 ‘‘(B) 8-WEEK SAFE HARBOR PERIOD.—An 22 eligible recipient of a covered loan may elect a 23 contiguous 8-week period that occurs during the 24 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 3833 PCS covered period for purposes of the safe harbor 1 period described in subparagraph (A). 2 ‘‘(C) APPLICATION DATE.—An eligible re- 3 cipient that has a forgiveness amount under 4 this section that is equivalent to the amount of 5 the covered loan received by the recipient and 6 that elects an 8-week safe harbor period de- 7 scribed in subparagraph (B) may apply for loan 8 forgiveness at the end of the 8-week safe harbor 9 period elected by the eligible recipient.’’; 10 (4) in subsection (e)— 11 (A) in paragraph (2), by inserting ‘‘covered 12 worker protection expenditures,’’ after ‘‘lease 13 obligations,’’; and 14 (B) in paragraph (3), by inserting ‘‘make 15 payments on covered worker protection expendi- 16 tures,’’ after ‘‘rent obligation,’’; and 17 (5) by amending subsection (h) to read as fol- 18 lows: 19 ‘‘(h) HOLD HARMLESS.— 20 ‘‘(1) IN GENERAL.—A lender may rely on any 21 certification or documentation submitted by an ap- 22 plicant for a covered loan or an eligible recipient of 23 a covered loan that— 24 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 3833 PCS ‘‘(A) is submitted pursuant to any statu- 1 tory requirement relating to covered loans or 2 any rule or guidance issued to carry out any ac- 3 tion relating to covered loans; and 4 ‘‘(B) attests that the applicant or eligible 5 recipient, as applicable, has accurately verified 6 any certification or documentation provided to 7 the lender. 8 ‘‘(2) NO ENFORCEMENT ACTION.—With respect 9 to a lender that relies on a certification or docu- 10 mentation described in paragraph (1)— 11 ‘‘(A) an enforcement action may not be 12 taken against the lender acting in good faith re- 13 lating to origination or forgiveness of a covered 14 loan based on such reliance; and 15 ‘‘(B) the lender acting in good faith shall 16 not be subject to any penalties relating to origi- 17 nation or forgiveness of a covered loan based on 18 such reliance.’’. 19 VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS Calendar No. 454 116TH CONGRESS 2D SESSION S. 3833 A BILL To extend the loan forgiveness period for the pay- check protection program, and for other pur- poses. JUNE 1, 2020 Read the second time and placed on the calendar VerDate Sep 11 2014 01:39 Jun 02, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6651 Sfmt 6651 E:\BILLS\S3833.PCS S3833 pamtmann on DSKBC07HB2PROD with BILLS