H.R. 6886 – Paycheck Protection Program Flexibility Act of 2020

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Updated April 14, 2026 at 12:23 PM UTC

The Paycheck Protection Program Flexibility Act of 2020 changes the rules for PPP loan forgiveness and repayment. It lengthens the period during which borrowers can qualify for forgiveness, lets them keep forgiveness even if they cannot re‑hire employees who left before February 15 2020, removes caps on the non‑payroll portion of a loan, requires a minimum five‑year loan term, and permits borrowers to defer payroll taxes on forgiven amounts. The changes apply to all PPP loans made under the Small Business Act and the CARES Act.

Key Provisions

Extends the PPP “covered period” to the earlier of 24 weeks after loan origination or December 31 2020.
Allows forgiveness without a reduction in full‑time equivalent employees if the borrower cannot rehire employees who left before February 15 2020 or cannot hire similarly qualified workers by December 31 2020.
Eliminates any limitation on the non‑payroll portion of a forgivable loan.
Sets a minimum loan maturity of five years for PPP loans that retain a balance after forgiveness.
Removes the requirement that borrowers pay employer payroll taxes on forgiven amounts, allowing those taxes to be deferred.

Legislative Activity

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HouseIntro Referral Latest Action

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.

Small Business Committee

May 15, 2020

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HouseIntro Referral

Introduced in House

May 15, 2020

HouseIntro Referral

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.

Small Business Committee

May 15, 2020

Bill Text

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Introduced in HouseIssued May 15, 2020

I

116th CONGRESS

2d Session

H. R. 6886

IN THE HOUSE OF REPRESENTATIVES

May 15, 2020

Mr. Roy (for himself, Mr. Phillips, Mr. Emmer, and Mr. Upton) 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

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 the period beginning on the date of the origination of a covered loan and ending on the earlier of—

(A)

the date that is 24 weeks after such date of origination; or

(B)

December 31, 2020;

; and

(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; or

(B)

is able to demonstrate an inability to hire similarly qualified employees on or before December 31, 2020.

(8)

No limitations

In carrying out this section, the Administrator may not limit the non-payroll portion of a forgivable covered loan amount.

.

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.