PAYCHECK PROTECTION PROGRAM FLEXIBILITY ACT OF 2020; Congressional Record Vol. 166, No. 103
(Senate - June 03, 2020)

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[Pages S2690-S2691]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          PAYCHECK PROTECTION PROGRAM FLEXIBILITY ACT OF 2020

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 7010, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (H.R. 7010) 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.

  There being no objection, the Senate proceeded to consider the bill
  Mr. McCONNELL. Mr. President, I appreciate the good faith efforts of 
Senator Johnson to make sure the terms of the program and its 
legislative intent are properly understood. In addition, I commend his 
leadership in looking at the program overall, and making suggestions 
about reforms should Congress determine that additional money is needed 
in the future for the program. The program was designed intentionally 
to get money into the hands of small businesses quickly as government 
took the extraordinary and unprecedented step of shutting down the 
economy because of the pandemic. However, should we need to replenish 
the fund, he is absolutely correct that we should ensure that money

[[Page S2691]]

flows to small businesses and enterprises that truly need it. I look 
forward to working with him and our colleagues on reforms to the 
program should Congress make the decision to extend it.
  Mr. President, I ask unanimous consent that the letter I send to the 
desk be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                   Congressional Intent for H.R. 7010

       We, the undersigned Members of Congress, would like to 
     clarify the congressional intent for H.R. 7010, the Paycheck 
     Protection Program Flexibility Act of 2020. The Paycheck 
     Protection Program (PPP) was authorized by Congress under the 
     CARES Act as a short-term solution to help businesses make 
     ends meet and continue to pay their employees during the 
     initial shocks of the COVID-19 pandemic. Under the CARES Act, 
     authorized funds for the program are set to expire on June 
     30, 2020, allowing for no new loans to be issued after this 
     date.
       H.R. 7010 amends the CARES Act to provide businesses with 
     greater flexibility for their use of PPP loans. Section 3(a) 
     of H.R. 7010 changes the definition of the ``covered period'' 
     defined by section 1102(a) of the CARES Act to be from 
     February 15, 2020 to December 31, 2020 instead of from 
     February 15, 2020 to June 30, 2020, as under current law. We 
     wish to clarify the congressional intent of this extension of 
     the covered period to December 31, 2020, and our expectations 
     about how the amended program will operate.
       The CARES Act requires that PPP loans may only be spent on 
     allowable uses during the covered period. In addition to the 
     uses otherwise allowed by section 7(a) of the Small Business 
     Act, the CARES Act authorizes as allowable uses ``payroll 
     costs; costs related to the continuation of group health care 
     benefits during periods of paid sick, medical, or family 
     leave, and insurance premiums; employee salaries, 
     commissions, or similar compensations; payments of interest 
     on any mortgage obligation (which shall not include any 
     prepayment of or payment of principal on a mortgage 
     obligation); rent (including rent under a lease agreement); 
     utilities; and interest on any other debt obligations that 
     were incurred before the covered period.'' The intention of 
     the extension of the covered period in H.R. 7010 is to allow 
     borrowers who received PPP loans before June 30, 2020 to 
     continue to make expenditures for allowable uses until 
     December 31, 2020. The extension of the covered period does 
     not authorize the Small Business Administration (SBA) to 
     issue any new PPP loans after June 30, 2020, as this date 
     remains fixed by section 1102(b) of the CARES Act.
       The extension of the covered period defined in section 
     1102(a) of the CARES Act should not be construed so as to 
     permit the SBA to continue accepting applications for loans 
     after June 30, 2020. Our intent and understanding of the law 
     is that, consistent with the CARES Act as amended by H.R. 
     7010, when the authorization of funds to guarantee new PPP 
     loans expires on June 30, 2020, the SBA and participating 
     lenders will stop accepting and approving applications for 
     PPP loans, regardless of whether the commitment level enacted 
     by the Paycheck Protection Program and Health Care 
     Enhancement Act has been reached.
     Mike Lee,
       United States Senator.
     Marco Rubio,
       United States Senator.
     Dean Phillips,
       Member of Congress.
     Ron Johnson,
       United States Senator.
     Benjamin L. Cardin,
       United States Senator.
     Chip Roy,
       Member of Congress.

  Mr. McCONNELL. I ask unanimous consent that the bill be considered 
read a third time.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  The bill was ordered to a third reading and was read the third time.
  Mr. McCONNELL. I know of no further debate on the bill.
  The PRESIDING OFFICER. Is there further debate?
  The bill having been read the third time, the question is, Shall the 
bill pass?
  The bill (H.R. 7010) was passed.
  Mr. McCONNELL. I ask unanimous consent that the motion to reconsider 
be considered made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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