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 matu-
rity 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 pro-
hibit 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 origi-
nation; 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 oper-
ating at before February 15, 2020, due to compliance with 
requirements established or guidance issued by the Sec-
retary of Health and Human Services, the Director of the 
Centers for Disease Control and Prevention, or the Occupa-
tional Safety and Health Administration during the period 
beginning on March 1, 2020, and ending December 31, 
2020, related to the maintenance of standards for sanita-
tion, social distancing, or any other worker or customer 
safety requirement related to COVID–19. 
‘‘(8) LIMITATION ON FORGIVENESS.—To receive loan forgive-
ness 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 prin-
cipal, 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 pursu-
ant 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 pursu-
ant 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-You- 
Go Act of 2010 (2 U.S.C. 933(g)). 
(b) DESIGNATION IN SENATE.—In the Senate, this Act is des-
ignated 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.