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.
The bill’s titles are written by its sponsor.
Sponsor and status
Sponsor. Representative for Minnesota’s 3rd congressional district. Democrat.
Last Updated: May 28, 2020
Length: 10 pages
What legislators are saying
“Meng Takes Action to Help Queens Workers and Small Businesses”
— Rep. Grace Meng [D-NY6] (Co-sponsor) on May 29, 2020
“U.S. Rep. Castor Champions Tampa Small Businesses, and Votes for PPP Lifeline, Transparency and Flexibility”
— Rep. Kathy Castor [D-FL14] (Co-sponsor) on May 28, 2020
The U.S. House of Representatives earlier today passed H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020, in a 417-1 bipartisan vote. The Senate may take up the bill next week. The bill provides for the following changes to the Paycheck Protection Program (PPP):
- Extending the minimum maturity of PPP loans to five years. This would take effect on the date of the bill’s enactment and apply to any PPP loan made on or after such a date; however, lenders and borrowers would not be prohibited from mutually agreeing to modify the maturity terms of prior-disbursed PPP loans.
- Extending the covered period for using PPP loan proceeds from June 30, 2020, to December 31, 2020.
- Extending the covered period for PPP loan forgiveness from eight weeks from the date of origination to the earlier of 24 weeks from the origination date or December 31, 2020. A borrower who received a loan before the bill’s enactment could elect to continue using the 8-week covered period set forth in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
- Extending the deadline for the re-hire exception to forgiveness reduction in the loan forgiveness provisions from June 30, 2020, to December 31, 2020.