Title: A bill to extend the loan forgiveness period for the paycheck protection program, and for other purposes.
Policy area: Commerce

Summary:
Paycheck Protection Program Extension Act
This bill extends the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019) and expands the allowable uses for paycheck protection loans.
Specifically, the bill extends the deadline to apply for a paycheck protection loan to December 31, 2020, and it allows recipients up to 16 weeks to use any funds received. Within the extended 16-week period, a recipient may elect an 8-week safe harbor in which to maintain payroll and outside of which the amount of loan forgiveness shall not be reduced because of a reduction in workforce or salary and wages.
The bill also expands loan forgiveness under the program to include amounts expended on worker protection, such as physical barriers or particulate filtering respirators that are needed to comply with requirements related to sanitation, social distancing, or worker or customer safety.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3833 Placed on Calendar Senate (PCS)]

<DOC>





                                                       Calendar No. 454
116th CONGRESS
  2d Session
                                S. 3833

   To extend the loan forgiveness period for the paycheck protection 
                    program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2020

  Mr. Rubio (for himself, Mr. Cardin, Ms. Collins, Mrs. Shaheen, Mr. 
   Durbin, Mr. Gardner, Mr. Daines, Mr. Tillis, Mr. Braun, and Mrs. 
Blackburn) introduced the following bill; which was read the first time

                              June 1, 2020

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
   To extend the loan forgiveness period for 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 
Extension Act''.

SEC. 2. AMENDMENTS TO THE PAYCHECK PROTECTION PROGRAM AND LOAN 
              FORGIVENESS.

    (a) Covered Period and Allowable Uses for Loans.--Section 7(a)(36) 
of the Small Business Act (15 U.S.C. 636(a)(36)) is amended--
            (1) in subparagraph (A)(iii), by striking ``June 30, 2020'' 
        and inserting ``December 31, 2020''; and
            (2) in subparagraph (F)--
                    (A) in subclause (VI), by striking ``and'' at the 
                end;
                    (B) in subclause (VII), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                                    ``(VIII) covered worker protection 
                                expenditures, as defined in section 
                                1106(a) of the CARES Act (Public Law 
                                116-136).'';
    (b) Loan Forgiveness.--Section 1106 of the CARES Act (Public Law 
116-136) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), by striking ``8-week'' and 
                inserting ``16-week'';
                    (B) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (7), (8) and (9), respectively;
                    (C) by inserting after paragraph (5) the following:
            ``(6) the term `covered worker protection expenditure'--
                    ``(A) means an operating or a capital expenditure, 
                as determined in accordance with generally accepted 
                accounting principles, that is required to facilitate 
                the adaptation of the business activities of an 
                eligible recipient to comply with requirements 
                established or guidance issued by the Department of 
                Health and Human Services, the Centers for Disease 
                Control, 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;
                    ``(B) may include--
                            ``(i) the purchase, maintenance, or 
                        renovation of assets that create or expand--
                                    ``(I) a drive-through window 
                                facility;
                                    ``(II) an indoor, outdoor, or 
                                combined air or air pressure 
                                ventilation or filtration system;
                                    ``(III) a physical barrier such as 
                                a sneeze guard;
                                    ``(IV) an indoor, outdoor, or 
                                combined commercial real property;
                                    ``(V) an onsite or offsite health 
                                screening capability; or
                                    ``(VI) other assets relating to the 
                                compliance with the requirements or 
                                guidance described in subparagraph (A), 
                                as determined by the Administrator in 
                                consultation with the Secretary of 
                                Health and Human Services and the 
                                Secretary of Labor; and
                            ``(ii) the purchase of--
                                    ``(I) covered materials described 
                                in section 328.103(a) of title 44, Code 
                                of Federal Regulations, or any 
                                successor regulation;
                                    ``(II) particulate filtering 
                                facepiece respirators approved by the 
                                National Institute for Occupational 
                                Safety and Health, including those 
                                approved only for emergency use 
                                authorization; or
                                    ``(III) other kinds of personal 
                                protective equipment, as determined by 
                                the Administrator in consultation with 
                                the Secretary of Health and Human 
                                Services and the Secretary of Labor; 
                                and
                    ``(C) does not include residential real property or 
                intangible property.''; and
                    (D) in paragraph (8), as so redesignated--
                            (i) in subparagraph (C), by striking 
                        ``and'' at the end; and
                            (ii) by adding at the end the following:
                    ``(E) covered worker protection expenditures; 
                and'';
            (2) in subsection (b), by adding at the end the following:
            ``(5) Any covered worker protection expenditure.'';
            (3) in subsection (d)--
                    (A) in paragraph (5)(B)--
                            (i) by striking ``date of enactment of this 
                        Act'' each place that term appears and 
                        inserting ``date of enactment of the Paycheck 
                        Protection Program Extension Act''; and
                            (ii) by striking ``June 30, 2020'' each 
                        place that term appears and inserting ``the 
                        date that is 16 weeks after the date of the 
                        origination of the covered loan'';
                    (B) by redesignating paragraph (6) as paragraph 
                (7); and
                    (C) by inserting after paragraph (5) the following:
            ``(6) Hold harmless.--
                    ``(A) In general.--The amount of loan forgiveness 
                under this section received by an eligible recipient of 
                a covered loan shall not be reduced because of a 
                reduction in number of employees described in paragraph 
                (2) or a reduction relating to salary and wages 
                described in paragraph (3) that occurs outside of the 
                8-week safe harbor period of the eligible recipient 
                described in subparagraph (B).
                    ``(B) 8-week safe harbor period.--An eligible 
                recipient of a covered loan may elect a contiguous 8-
                week period that occurs during the covered period for 
                purposes of the safe harbor period described in 
                subparagraph (A).
                    ``(C) Application date.--An eligible recipient that 
                has a forgiveness amount under this section that is 
                equivalent to the amount of the covered loan received 
                by the recipient and that elects an 8-week safe harbor 
                period described in subparagraph (B) may apply for loan 
                forgiveness at the end of the 8-week safe harbor period 
                elected by the eligible recipient.'';
            (4) in subsection (e)--
                    (A) in paragraph (2), by inserting ``covered worker 
                protection expenditures,'' after ``lease 
                obligations,''; and
                    (B) in paragraph (3), by inserting ``make payments 
                on covered worker protection expenditures,'' after 
                ``rent obligation,''; and
            (5) by amending subsection (h) to read as follows:
    ``(h) Hold Harmless.--
            ``(1) In general.--A lender may rely on any certification 
        or documentation submitted by an applicant for a covered loan 
        or an eligible recipient of a covered loan that--
                    ``(A) is submitted pursuant to any statutory 
                requirement relating to covered loans or any rule or 
                guidance issued to carry out any action relating to 
                covered loans; and
                    ``(B) attests that the applicant or eligible 
                recipient, as applicable, has accurately verified any 
                certification or documentation provided to the lender.
            ``(2) No enforcement action.--With respect to a lender that 
        relies on a certification or documentation described in 
        paragraph (1)--
                    ``(A) an enforcement action may not be taken 
                against the lender acting in good faith relating to 
                origination or forgiveness of a covered loan based on 
                such reliance; and
                    ``(B) the lender acting in good faith shall not be 
                subject to any penalties relating to origination or 
                forgiveness of a covered loan based on such 
                reliance.''.
                                                       Calendar No. 454

116th CONGRESS

  2d Session

                                S. 3833

_______________________________________________________________________

                                 A BILL

   To extend the loan forgiveness period for the paycheck protection 
                    program, and for other purposes.

_______________________________________________________________________

                              June 1, 2020

            Read the second time and placed on the calendar