Paycheck Protection Program Flexibility Act of 2020

Bill: 116-hr-7010
Sponsor: full_name: Rep. Phillips, Dean [D-MN-3]
Introduced: 2020-05-26
Policy area: Commerce
Subjects: Business expenses

Cardiovascular and respiratory health

Emergency medical services and trauma care

Employee hiring

Employment taxes

Government lending and loan guarantees

Infectious and parasitic diseases

Small business

Wages and earnings
Latest action: action_date: 2020-06-05
text: Became Public Law No: 116-142.

Summaries:
action_date: 2020-05-26
action_desc: Introduced in House
text: <p><b>Paycheck Protection Program Flexibility Act of 2020</b></p> <p>This bill modifies provisions related to the forgiveness of loans made to small businesses under the Paycheck Protection Program implemented in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>Specifically, the bill establishes a minimum maturity of five years for a paycheck protection loan that has a remaining balance after the application of forgiveness. The bill also extends the covered period during which the recipient of a paycheck protection loan may use such funds for certain expenses while remaining eligible for forgiveness of the loan.</p> <p>Further, the bill prohibits the Small Business Administration from limiting the non-payroll portion of a forgivable covered loan amount. Currently, only 25% of a paycheck protection loan may be allocated to non-payroll expenses such as rent and utilities.</p> <p>The bill extends the period of time in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan. However, the forgivable amount must be determined without regard to a reduction in the number of employees if the recipient is (1) unable to rehire an employee, (2) able to demonstrate an inability to hire a similarly qualified employee, or (3) able to demonstrate an inability to return to the same level of business activity.</p> <p>Lastly, the bill eliminates a provision that makes a paycheck protection loan recipient who has such indebtedness forgiven ineligible to defer payroll tax payments.</p>

action_date: 2020-05-28
action_desc: Passed House
text: <p><b>Paycheck Protection Program Flexibility Act of 2020</b></p> <p>This bill modifies provisions related to the forgiveness of loans made to small businesses under the Paycheck Protection Program implemented in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>Specifically, the bill establishes a minimum maturity of five years for a paycheck protection loan with a remaining balance after forgiveness. The bill also extends the covered period during which a loan recipient may use such funds for certain expenses while remaining eligible for forgiveness. The bill raises the non-payroll portion of a forgivable covered loan amount from the current 25% up to 40%. </p> <p>The bill extends the period in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan. However, the forgivable amount must be determined without regard to a reduction in the number of employees if the recipient is (1) unable to rehire former employees and is unable to to hire similarly qualified employees, or (2) unable to return to the same level of business activity due to compliance with federal requirements or guidance related to COVID-19.</p> <p>Additionally, the bill revises the deferral period for paycheck protection loans, allowing recipients to defer payments until they receive compensation for forgiven amounts. Recipients who do not apply for forgiveness shall have 10 months from the program's expiration to begin making payments.</p> <p>The bill also eliminates a provision that makes a paycheck protection loan recipient who has such indebtedness forgiven ineligible to defer payroll tax payments.</p> <p>Lastly, the bill is designated as an emergency requirement pursuant to the Statutory Pay-As-You-Go Act of 2010 (PAYGO) and the Senate PAYGO rule.</p>

action_date: 2020-06-03
action_desc: Passed Senate
text: <p><b>Paycheck Protection Program Flexibility Act of 2020</b></p> <p>This bill modifies provisions related to the forgiveness of loans made to small businesses under the Paycheck Protection Program implemented in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>Specifically, the bill establishes a minimum maturity of five years for a paycheck protection loan with a remaining balance after forgiveness. The bill also extends the covered period during which a loan recipient may use such funds for certain expenses while remaining eligible for forgiveness. The bill raises the non-payroll portion of a forgivable covered loan amount from the current 25% up to 40%. </p> <p>The bill extends the period in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan. However, the forgivable amount must be determined without regard to a reduction in the number of employees if the recipient is (1) unable to rehire former employees and is unable to to hire similarly qualified employees, or (2) unable to return to the same level of business activity due to compliance with federal requirements or guidance related to COVID-19.</p> <p>Additionally, the bill revises the deferral period for paycheck protection loans, allowing recipients to defer payments until they receive compensation for forgiven amounts. Recipients who do not apply for forgiveness shall have 10 months from the program's expiration to begin making payments.</p> <p>The bill also eliminates a provision that makes a paycheck protection loan recipient who has such indebtedness forgiven ineligible to defer payroll tax payments.</p> <p>Lastly, the bill is designated as an emergency requirement pursuant to the Statutory Pay-As-You-Go Act of 2010 (PAYGO) and the Senate PAYGO rule.</p>

action_date: 2020-06-05
action_desc: Public Law
text: <p><b>Paycheck Protection Program Flexibility Act of 2020</b></p> <p>This bill modifies provisions related to the forgiveness of loans made to small businesses under the Paycheck Protection Program implemented in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>Specifically, the bill establishes a minimum maturity of five years for a paycheck protection loan with a remaining balance after forgiveness. The bill also extends the covered period during which a loan recipient may use such funds for certain expenses while remaining eligible for forgiveness. The bill raises the non-payroll portion of a forgivable covered loan amount from the current 25% up to 40%. </p> <p>The bill extends the period in which an employer may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a paycheck protection loan. However, the forgivable amount must be determined without regard to a reduction in the number of employees if the recipient is (1) unable to rehire former employees and is unable to to hire similarly qualified employees, or (2) unable to return to the same level of business activity due to compliance with federal requirements or guidance related to COVID-19.</p> <p>Additionally, the bill revises the deferral period for paycheck protection loans, allowing recipients to defer payments until they receive compensation for forgiven amounts. Recipients who do not apply for forgiveness shall have 10 months from the program's expiration to begin making payments.</p> <p>The bill also eliminates a provision that makes a paycheck protection loan recipient who has such indebtedness forgiven ineligible to defer payroll tax payments.</p> <p>Lastly, the bill is designated as an emergency requirement pursuant to the Statutory Pay-As-You-Go Act of 2010 (PAYGO) and the Senate PAYGO rule.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7010 IN THE HOUSE OF REPRESENTATIVES 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.

1. Short title This Act may be cited as the Paycheck Protection Program Flexibility Act of 2020 . 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 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 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 requirements of this section. 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 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 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 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 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. (8) Limitation on forgiveness To receive 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 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 (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 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. . (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 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. 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 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. 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), the concurrent resolution on the budget for fiscal year 2018.

Passed the House of Representatives May 28, 2020. Cheryl L. Johnson, Clerk.

tv_txt: I 116th CONGRESS 2d Session H. R. 7010 IN THE HOUSE OF REPRESENTATIVES May 26, 2020 Mr. Phillips (for himself, Mr. Roy , Mr. Upton , Mr. Fitzpatrick , Mr. Rouda , Mr. Harris , Mr. Kildee , Ms. Schrier , Mr. Welch , Mr. Brindisi , Mr. Pappas , Mrs. Walorski , Ms. Meng , Mr. Joyce of Ohio , Ms. Torres Small of New Mexico , Mr. Bergman , Mr. Schweikert , Mr. LaMalfa , Mr. Krishnamoorthi , Mr. Bera , Ms. Herrera Beutler , Mr. Van Drew , Miss Rice of New York , Mr. Dunn , Mr. O'Halleran , Ms. Castor of Florida , Mr. Deutch , Ms. Stefanik , Mr. Ryan , Ms. McCollum , Mr. Courtney , Mr. Kilmer , Mr. Joyce of Pennsylvania , Mr. Wright , Mr. King of New York , and Mr. Curtis ) introduced the following bill; which was referred to the Committee on Small Business , and in addition to the Committee on Ways and Means , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL 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.

1. Short title This Act may be cited as the Paycheck Protection Program Flexibility Act of 2020 . 2. Maturity for loans with remaining balance after application of forgiveness 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 . 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 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 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 reduction in the number of full-time equivalent employees if an eligible recipient— (A) is unable to rehire an individual who was an employee of the eligible recipient on or before February 15, 2020; (B) is able to demonstrate an inability to hire similarly qualified employees on or before December 31, 2020; or (C) is able to demonstrate an inability to return to the same level of business activity as such business was operating at prior to February 15, 2020. (8) No limitations In carrying out this section, the Administrator may not limit the non-payroll portion of a forgivable covered loan amount. ; 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. . 4. Delay of payment of employer payroll taxes Section 2302(a) of the CARES Act ( Public Law 116–136 ) is amended by striking paragraph (3). 5. Effective date; applicability The amendments made by this Act 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.

tv_txt: I 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 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.

1. Short title This Act may be cited as the Paycheck Protection Program Flexibility Act of 2020 . 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 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 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 requirements of this section. 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 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 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 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 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. (8) Limitation on forgiveness To receive 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 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 (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 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. . (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 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. 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 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. 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), 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.

tv_txt: 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 protection program to defer payroll taxes, and for other purposes.

1. Short title This Act may be cited as the Paycheck Protection Program Flexibility Act of 2020 . 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 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 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 requirements of this section. 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 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 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 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 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. (8) Limitation on forgiveness To receive 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 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 (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 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. . (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 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. 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 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. 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), the concurrent resolution on the budget for fiscal year 2018.

Passed the House of Representatives May 28, 2020. Cheryl L. Johnson, Clerk.