Text: H.R.7010 — 116th Congress (2019-2020)All Information (Except Text)

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Public Law No: 116-142 (06/05/2020)

 
[116th Congress Public Law 142]
[From the U.S. Government Publishing Office]



[[Page 134 STAT. 641]]

Public Law 116-142
116th Congress

                                 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. <<NOTE: June 5, 2020 -  [H.R. 7010]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Paycheck 
Protection Program Flexibility Act of 2020. 15 USC 631 note.>> 
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) <<NOTE: 15 USC 636 note.>>  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. <<NOTE: Time periods.>>  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 <<NOTE: Ante, p. 297.>>  amended--
            (1) in subsection (a), by striking paragraph (3) and 
        inserting the following:
            ``(3) <<NOTE: Definition.>>  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)--

[[Page 134 STAT. 642]]

                    (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) <<NOTE: Determination.>>  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

[[Page 134 STAT. 643]]

            (3) by adding at the end the following new clause:
                          ``(v) <<NOTE: Deadline. Effective date.>>  
                      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) <<NOTE: 15 USC 636 note.>>  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 <<NOTE: Ante, p. 351.>>  amended by striking paragraph (3).

    (b) <<NOTE: 26 USC 3111 note.>>  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.

    Approved June 5, 2020.

LEGISLATIVE HISTORY--H.R. 7010:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 166 (2020):
            May 28, considered and passed House.
            June 3, considered and passed Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2020):
            June 5, Presidential statement.

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