I 

116TH CONGRESS 

2D SESSION 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. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2020 

Mr. PHILLIPS (for himself, Mr. ROY, Mr. UPTON, Mr. FITZPATRICK, Mr. 

ROUDA, Mr. HARRIS, Mr. KILDEE, Ms. SCHRIER, Mr. WELCH, Mr. BRINDISI, Mr. PAPPAS, Mrs. WALORSKI, Ms. MENG, Mr. JOYCE of Ohio, Ms. 

TORRES SMALL of New Mexico, Mr. BERGMAN, Mr. SCHWEIKERT, Mr. 

LAMALFA, Mr. KRISHNAMOORTHI, Mr. BERA, Ms. HERRERA BEUTLER, 

Mr. VAN DREW, Miss RICE of New York, Mr. DUNN, Mr. O’HALLERAN, 

Ms. CASTOR of Florida, Mr. DEUTCH, Ms. STEFANIK, Mr. RYAN, Ms. 

MCCOLLUM, Mr. COURTNEY, Mr. KILMER, Mr. JOYCE of Pennsylvania, 

Mr. WRIGHT, Mr. KING of New York, and Mr. CURTIS) introduced 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 committee 

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


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•HR 7010 IH

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’’. 

6 SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE 

7 AFTER APPLICATION OF FORGIVENESS. 

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

9 U.S.C. 636(a)(36)) is amended by inserting ‘‘minimum 

10 maturity of 5 years and a’’ before ‘‘maximum maturity’’. 

11 SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO12 GRAM LOAN FORGIVENESS. 

13 (a) EXTENSION OF COVERED PERIOD.—Section 

14 7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C. 

15 636(a)(36)(A)(iii)) is amended by striking ‘‘June 30, 

16 2020’’ and inserting ‘‘December 31, 2020’’. 

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

18 (Public Law 116–136) is amended— 

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

20 and inserting the following: 

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

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

23 the origination of a covered loan and ending the ear24 lier of— 


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

2 date of origination; or 

3 ‘‘(B) December 31, 2020;’’; 

4 (2) in subsection (d)— 

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

6 30, 2020’’ each place it appears and inserting 

7 ‘‘December 31, 2020’’; and 

8 (B) by adding at the end the following new 

9 paragraphs: 

10 ‘‘(7) EXEMPTION BASED ON EMPLOYEE AVAIL11 ABILITY.—During the period beginning on February 

12 15, 2020, and ending on December 31, 2020, the 

13 amount of loan forgiveness under this section shall 

14 be determined without regard to a reduction in the 

15 number of full-time equivalent employees if an eligi16 ble recipient— 

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

18 was an employee of the eligible recipient on or 

19 before February 15, 2020; 

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

21 hire similarly qualified employees on or before 

22 December 31, 2020; or 

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

24 return to the same level of business activity as 


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1 such business was operating at prior to Feb2 ruary 15, 2020. 

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

4 section, the Administrator may not limit the non5 payroll portion of a forgivable covered loan 

6 amount.’’; and 

7 (3) by adding at the end the following new sub8 section: 

9 ‘‘(l) APPLICATION TO CERTAIN ELIGIBLE RECIPI10 ENTS.—An eligible recipient that received a covered loan 

11 before the date of enactment of this subsection may elect 

12 for the covered period applicable to such covered loan to 

13 end on the date that is 8 weeks after the date of the origi14 nation of such covered loan.’’. 

15 SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL 

16 TAXES. 

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

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

19 SEC. 5. EFFECTIVE DATE; APPLICABILITY. 

20 The amendments made by this Act shall be effective 

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

22 and shall apply to any loan made pursuant to section 

23 7(a)(36) of the Small Business Act (15 U.S.C. 

24 636(a)(36)) or section 1109 of the CARES Act. 

Æ 


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