II 

116TH CONGRESS 

2D SESSION S. 3805 

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. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2020 

Mr. KING (for himself, Mr. DAINES, Mr. KAINE, Mr. TILLIS, Ms. STABENOW, 

and Mr. GARDNER) introduced the following bill; which was read twice 

and referred to the Committee on Finance 

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 protection program to defer payroll taxes, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Paycheck Protection 

5 Program Flexibility Act of 2020’’. 


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•S 3805 IS

1 SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE 

2 AFTER APPLICATION OF FORGIVENESS. 

3 Section 7(a)(36)(K)(ii) of the Small Business Act (15 

4 U.S.C. 636(a)(36)(K)(ii)) is amended by inserting ‘‘min5 imum maturity of 5 years and a’’ before ‘‘maximum matu6 rity’’. 

7 SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO8 GRAM LOAN FORGIVENESS. 

9 (a) EXTENSION OF COVERED PERIOD.—Section 

10 7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C. 

11 636(a)(36)(A)(iii)) is amended by striking ‘‘June 30, 

12 2020’’ and inserting ‘‘December 31, 2020’’. 

13 (b) FORGIVENESS.—Section 1106 of the CARES Act 

14 (Public Law 116–136) is amended— 

15 (1) in subsection (a), by striking paragraph (3) 

16 and inserting the following: 

17 ‘‘(3) the term ‘covered period’ means, subject to 

18 subsection (l), the period beginning on the date of 

19 the origination of a covered loan and ending the ear20 lier of— 

21 ‘‘(A) the date that is 24 weeks after such 

22 date of origination; or 

23 ‘‘(B) December 31, 2020;’’; 

24 (2) in subsection (d)— 


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•S 3805 IS

1 (A) in paragraph (5)(B), by striking ‘‘June 

2 30, 2020’’ each place it appears and inserting 

3 ‘‘December 31, 2020’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(7) EXEMPTION BASED ON EMPLOYEE AVAIL6 ABILITY.—During the period beginning on February 

7 15, 2020, and ending on December 31, 2020, the 

8 amount of loan forgiveness under this section shall 

9 be determined without regard to a reduction in the 

10 number of full-time equivalent employees if an eligi11 ble recipient— 

12 ‘‘(A) is unable to rehire an individual who 

13 was an employee of the eligible recipient on or 

14 before February 15, 2020; 

15 ‘‘(B) is able to demonstrate an inability to 

16 hire similarly qualified employees on or before 

17 December 31, 2020; or 

18 ‘‘(C) is able to demonstrate an inability to 

19 return to the same level of business activity as 

20 the eligible recipient was operating at before 

21 February 15, 2020. 

22 ‘‘(8) NO LIMITATIONS.—In carrying out this 

23 section, the Administrator may not limit the non24 payroll portion of a forgivable covered loan 

25 amount;’’; and 


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•S 3805 IS

1 (3) by adding at the end the following new sub2 section: 

3 ‘‘(l) APPLICATION TO CERTAIN ELIGIBLE RECIPI4 ENTS.—An eligible recipient that received a covered loan 

5 before the date of enactment of this subsection may elect 

6 for the covered period applicable to such covered loan to 

7 end on the date that is 8 weeks after the date of the origi8 nation of such covered loan.’’. 

9 SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL 

10 TAXES. 

11 Section 2302(a) of the CARES Act (Public Law 116– 

12 136) is amended by striking paragraph (3). 

13 SEC. 5. EFFECTIVE DATE; APPLICABILITY. 

14 The amendments made by this Act shall be effective 

15 as if included in the CARES Act (Public Law 116–136) 

16 and shall apply to any loan made pursuant to section 

17 7(a)(36) of the Small Business Act (15 U.S.C. 

18 636(a)(36)) or section 1109 of the CARES Act (Public 

19 Law 116–136). 

Æ 


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