116TH CONGRESS 

2D SESSION H. R. 7010 

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. 
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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 (a) IN GENERAL.—Section 7(a)(36)(K)(ii) of the 

9 Small Business Act (15 U.S.C. 636(a)(36)) is amended 

10 by inserting ‘‘minimum maturity of 5 years and a’’ before 

11 ‘‘maximum maturity’’. 

12 (b) EFFECTIVE DATE; APPLICABILITY.—The amend13 ment made by this section shall take effect on the date 

14 of the enactment of this Act and shall apply to any loan 

15 made pursuant to section 7(a)(36) of the Small Business 

16 Act (15 U.S.C. 636(a)(36)) on or after such date. Nothing 

17 in this Act, the CARES Act (Public Law 116–136), or 

18 the Paycheck Protection Program and Health Care En19 hancement Act (Public Law 116–139) shall be construed 

20 to prohibit lenders and borrowers from mutually agreeing 

21 to modify the maturity terms of a covered loan described 

22 in subparagraph (K) of such section to conform with re23 quirements of this section. 
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1 SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO2 GRAM LOAN FORGIVENESS. 

3 (a) EXTENSION OF COVERED PERIOD.—Section 

4 7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C. 

5 636(a)(36)(A)(iii)) is amended by striking ‘‘June 30, 

6 2020’’ and inserting ‘‘December 31, 2020’’. 

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

8 (Public Law 116–136) is amended— 

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

10 and inserting the following: 

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

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

13 the origination of a covered loan and ending the ear14 lier of— 

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

16 date of origination; or 

17 ‘‘(B) December 31, 2020;’’; 

18 (2) in subsection (d)— 

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

20 30, 2020’’ each place it appears and inserting 

21 ‘‘December 31, 2020’’; and 

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

23 paragraphs: 

24 ‘‘(7) EXEMPTION BASED ON EMPLOYEE AVAIL25 ABILITY.—During the period beginning on February 

26 15, 2020, and ending on December 31, 2020, the 
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1 amount of loan forgiveness under this section shall 

2 be determined without regard to a proportional re3 duction in the number of full-time equivalent em4 ployees if an eligible recipient, in good faith— 

5 ‘‘(A) is able to document— 

6 ‘‘(i) an inability to rehire individuals 

7 who were employees of the eligible recipi8 ent on February 15, 2020; and 

9 ‘‘(ii) an inability to hire similarly 

10 qualified employees for unfilled positions 

11 on or before December 31, 2020; or 

12 ‘‘(B) is able to document an inability to re13 turn to the same level of business activity as 

14 such business was operating at before February 

15 15, 2020, due to compliance with requirements 

16 established or guidance issued by the Secretary 

17 of Health and Human Services, the Director of 

18 the Centers for Disease Control and Prevention, 

19 or the Occupational Safety and Health Admin20 istration during the period beginning on March 

21 1, 2020, and ending December 31, 2020, re22 lated to the maintenance of standards for sani23 tation, social distancing, or any other worker or 

24 customer safety requirement related to COVID– 

25 19. 
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1 ‘‘(8) LIMITATION ON FORGIVENESS.—To re2 ceive loan forgiveness under this section, an eligible 

3 recipient shall use at least 60 percent of the covered 

4 loan amount for payroll costs, and may use up to 40 

5 percent of such amount for any payment of interest 

6 on any covered mortgage obligation (which shall not 

7 include any prepayment of or payment of principal 

8 on a covered mortgage obligation), any payment on 

9 any covered rent obligation, or any covered utility 

10 payment.’’; and 

11 (3) by adding at the end the following new sub12 section: 

13 ‘‘(l) APPLICATION TO CERTAIN ELIGIBLE RECIPI14 ENTS.—An eligible recipient that received a covered loan 

15 before the date of enactment of this subsection may elect 

16 for the covered period applicable to such covered loan to 

17 end on the date that is 8 weeks after the date of the origi18 nation of such covered loan.’’. 

19 (c) EXTENSION OF DEFERRAL PERIOD.—Section 

20 7(a)(36)(M) of the Small Business Act (15 U.S.C. 

21 636(a)(36)(M)) is amended— 

22 (1) in clause (ii)(II), by striking ‘‘for a period 

23 of not less than 6 months, including payment of 

24 principal, interest, and fees, and not more than 1 

25 year.’’ and inserting the following: ‘‘, including pay-
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1 ment of principal, interest, and fees, until the date 

2 on which the amount of forgiveness determined 

3 under section 1106 of the CARES Act is remitted 

4 to the lender.’’; 

5 (2) in clause (iii), by striking ‘‘for a period of 

6 not less than 6 months, including payment of prin7 cipal, interest, and fees, and not more than 1 year.’’ 

8 and inserting the following: ‘‘, including payment of 

9 principal, interest, and fees, until the date on which 

10 the amount of forgiveness determined under section 

11 1106 of the CARES Act is remitted to the lender.’’; 

12 and 

13 (3) by adding at the end the following new 

14 clause: 

15 ‘‘(v) RULE OF CONSTRUCTION.—If an 

16 eligible recipient fails to apply for forgive17 ness of a covered loan within 10 months 

18 after the last day of the covered period de19 fined in section 1106(a) of the CARES 

20 Act, such eligible recipient shall make pay21 ments of principal, interest, and fees on 

22 such covered loan beginning on the day 

23 that is not earlier than the date that is 10 

24 months after the last day of such covered 

25 period.’’. 
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1 (d) EFFECTIVE DATE; APPLICABILITY.—The amend2 ments made by this section shall be effective as if included 

3 in the CARES Act (Public Law 116–136) and shall apply 

4 to any loan made pursuant to section 7(a)(36) of the 

5 Small Business Act (15 U.S.C. 636(a)(36)) or section 

6 1109 of the CARES Act. 

7 SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL 

8 TAXES. 

9 (a) IN GENERAL.—Section 2302(a) of the CARES 

10 Act (Public Law 116–136) is amended by striking para11 graph (3). 

12 (b) EFFECTIVE DATE; APPLICABILITY.—The amend13 ments made by this section shall be effective as if included 

14 in the CARES Act (Public Law 116–136) and shall apply 

15 to any loan made pursuant to section 7(a)(36) of the 

16 Small Business Act (15 U.S.C. 636(a)(36)) or section 

17 1109 of the CARES Act. 

18 SEC. 5. EMERGENCY DESIGNATION. 

19 (a) IN GENERAL.—This Act is designated as an 

20 emergency requirement pursuant to section 4(g) of the 

21 Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(g)). 

22 (b) DESIGNATION IN SENATE.—In the Senate, this 

23 Act is designated as an emergency requirement pursuant 

24 to section 4112(a) of H. Con. Res. 71 (115th Congress), 
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1 the concurrent resolution on the budget for fiscal year 

2 2018. 

Passed the House of Representatives May 28, 2020. 

Attest: 

Clerk. 

116TH CONGRESS 

2D SESSION H. R. 7010 

AN ACT 

To amend the Small Business Act and the CARES 

defer payroll taxes, and for other purposes. ness under the paycheck protection program to tion program, to allow recipients of loan forgiveforgiveness of loans under the paycheck protecAct to modify certain provisions related to the