Paycheck Protection Program Flexibility Act of 2020

HB 6886 Paycheck Protection Program Flexibility Act of 2020

US Congress 116th Congress

Paycheck Protection Program Flexibility Act of 2020
HB-6886


About HB-6886

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). 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. 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. 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 unable to rehire an employee and is able to demonstrate an inability to hire a similarly qualified employee. Lastly, the bill eliminates a provision that makes a paycheck protection loan recipient who has such indebtedness forgiven ineligible to defer payroll tax payments.

  

Bill Texts

Introduced 05/21/2020

Weigh In

No votes yet!
Cast yours now to be the first.

Votes for: 0 Votes against: 0

Sponsors (66)

Sponsors by party

     

Bill Sponsors

History

Introduced In House

05/15/2020

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.

05/15/2020