US Congress Senate Bill 3805 (Prior Session Legislation)

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Spectrum:
Status: Introduced on May 21 2020 - 25% progression, died in committee
Action: 2020-05-21 - Read twice and referred to the Committee on Finance.
Pending: Senate Finance Committee
Text: Latest bill text (Introduced) [PDF]

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 (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. Lastly, the bill eliminates a provision that makes a paycheck protection loan recipient who has such indebtedness forgiven ineligible to defer payroll tax payments.

Paycheck Protection Program Flexibility Act of 2020

Sen. Angus King [I-ME]	Sen. Steve Daines [R-MT]	Sen. Tim Kaine [D-VA]	Sen. Thom Tillis [R-NC]
Sen. Debbie Stabenow [D-MI]	Sen. Cory Gardner [R-CO]	Sen. John Cornyn [R-TX]	Sen. Kyrsten Sinema [I-AZ]
Sen. Jack Reed [D-RI]

Date	Chamber	Action
2020-05-21	Senate	Read twice and referred to the Committee on Finance.

HB7010 (Related) 2020-06-05 - Became Public Law No: 116-142. (TXT | PDF)

Type	Source
Summary	https://www.congress.gov/bill/116th-congress/senate-bill/3805/all-info
Text	https://www.congress.gov/116/bills/s3805/BILLS-116s3805is.pdf