H. R. 7010 

One Hundred Sixteenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Friday, 

the third day of January, two thousand and twenty 

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. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

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) 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. 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 amended— 

(1) in subsection (a), by striking paragraph (3) and inserting 

the following: 

‘‘(3) 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)— 
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(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) 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 
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(3) by adding at the end the following new clause: 

‘‘(v) 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) 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 amended by striking paragraph (3). 

(b) 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-YouGo 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. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.