II 
116TH CONGRESS 
2D SESSION 
H. R. 7010 
IN THE SENATE OF THE UNITED STATES 
JUNE 1, 2020 
Received 
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 protec-
tion program to defer payroll taxes, and for other pur-
poses. 
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Be it enacted by the Senate and House of Representa-
tives 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 amend-
ment 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 En-
hancement 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 re-
quirements of this section. 
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SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PRO-
GRAM 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 ear-
lier of— 
‘‘(A) the date that is 24 weeks after such 
date of origination; or 
‘‘(B) December 31, 2020;’’; 
(2) in subsection (d)— 
(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 AVAIL-
ABILITY.—During the period beginning on February 
15, 2020, and ending on December 31, 2020, the 
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amount of loan forgiveness under this section shall 
be determined without regard to a proportional re-
duction in the number of full-time equivalent em-
ployees if an eligible recipient, in good faith— 
‘‘(A) is able to document— 
‘‘(i) an inability to rehire individuals 
who were employees of the eligible recipi-
ent 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 re-
turn 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 Admin-
istration during the period beginning on March 
1, 2020, and ending December 31, 2020, re-
lated to the maintenance of standards for sani-
tation, social distancing, or any other worker or 
customer safety requirement related to COVID– 
19. 
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‘‘(8) LIMITATION
ON
FORGIVENESS.—To re-
ceive 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 sub-
section: 
‘‘(l) APPLICATION TO CERTAIN ELIGIBLE RECIPI-
ENTS.—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 origi-
nation 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 pay-
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ment 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 prin-
cipal, 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 
(3) by adding at the end the following new 
clause: 
‘‘(v) RULE OF CONSTRUCTION.—If an 
eligible recipient fails to apply for forgive-
ness of a covered loan within 10 months 
after the last day of the covered period de-
fined in section 1106(a) of the CARES 
Act, such eligible recipient shall make pay-
ments 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.’’. 
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(d) EFFECTIVE DATE; APPLICABILITY.—The amend-
ments 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 para-
graph (3). 
(b) EFFECTIVE DATE; APPLICABILITY.—The amend-
ments 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-You-Go 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), 
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the concurrent resolution on the budget for fiscal year 
2018. 
Passed the House of Representatives May 28, 2020. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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