Paycheck Protection Program Loan Forgiveness Flexibility Act of 2021
Bill: H.R.1589 | Sponsor: Rep. Rosendale Sr., Matthew M. (R-MT)
Policy area: Commerce

Summary:
Paycheck Protection Program Loan Forgiveness Flexibility Act of 2021
This bill modifies the rehiring deadline by which a participant in the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), must return to pre-pandemic levels of employment in order to be eligible for loan forgiveness.
Specifically, the bill sets this rehiring deadline to 90 days after the termination of all state and local COVID-19 emergency declarations that apply to the location of the recipient.


To amend the Small Business Act to modify the exemption for re-hires 
  for loan forgiveness under the paycheck protection program, 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 Loan 
Forgiveness Flexibility Act of 2021''.

SEC. 2. EXEMPTION FOR RE-HIRES FOR LOAN FORGIVENESS UNDER THE PAYCHECK 
              PROTECTION PROGRAM.

    (a) In General.--Section 7A(d)(5) of the Small Business Act (as 
redesignated, transferred, and amended by section 304(b) of the 
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act 
(Public Law 116-260)) is amended--
            (1) in subparagraph (B)(i)(II), by striking ``not later 
        than'' and all that follows through ``covered loan)'' and 
        inserting ``not later than 90 days after the termination date 
        of all State or local COVID-19 emergencies applicable to the 
        location of the eligible entity, if such date occurs after 
        disbursement of the covered loan'';
            (2) in subparagraph (B)(ii)(II), by striking ``not later 
        than'' and all that follows through ``covered loan)'' and 
        inserting ``not later than 90 days after the termination date 
        of all State or local COVID-19 emergencies applicable to the 
        location of the eligible entity, if such date occurs after 
        disbursement of the covered loan''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) State or local covid-19 emergency.--The term 
                `State or local COVID-19 emergency' means a public 
                health emergency declared by a State or local 
                government because of the COVID-19 pandemic.''.
    (b) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsection (a) shall apply to any covered 
        loan made pursuant to section 7(a)(36) of the Small Business 
        Act (15 U.S.C. 636(a)(36)) before, on, or after the date of 
        enactment of this Act, including forgiveness of such a loan.
            (2) Exclusion of loans already forgiven.--The amendments 
        made by subsection (a) shall not apply to a loan made pursuant 
        to section 7(a)(36) of the Small Business Act (15 U.S.C. 
        636(a)(36)) for which the borrower received forgiveness before 
        the date of enactment of this Act.
                                 <all>