PPP TIME Act

Paycheck Protection Program Timeframe Modification and Extension Act or the PPP TIME Act

This bill modifies the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019).

Specifically, the bill extends the program through August 15, 2020, and it allows a loan recipient to select any eight-week period within the program's duration to use their loan.

The bill also prohibits the Small Business Administration from requiring a paycheck protection loan recipient to use at least 50% of loan amounts for payroll costs.

Further, the bill defers payment of applicable employment taxes for a paycheck protection loan recipient that has had loan amounts forgiven. Currently, a taxpayer that has had loan amounts forgiven is ineligible for such deferral.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3859 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3859

 To extend the covered period for the paycheck protection program, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 1, 2020

 Mrs. Loeffler introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To extend the covered period for the paycheck protection program, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Paycheck Protection Program 
Timeframe Modification and Extension Act'' or the ``PPP TIME Act''.

SEC. 2. AMENDMENTS TO THE PAYCHECK PROTECTION PROGRAM AND LOAN 
              FORGIVENESS.

    (a) Extension of Covered Period for Paycheck Protection Program.--
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 ``August 15, 2020''.
    (b) Loan Forgiveness.--Section 1106 of the CARES Act (Public Law 
116-136) is amended--
            (1) in subsection (a)(3), by striking ``the 8-week period'' 
        and inserting ``any 8-week period, as selected by an eligible 
        recipient, occurring during the 24-week period''; and
            (2) in subsection (d)--
                    (A) in paragraph (5)(B), by striking ``June 30, 
                2020'' each place that term appears and inserting 
                ``August 15, 2020'';
                    (B) by redesignating paragraph (6) as paragraph 
                (7); and
                    (C) by inserting after paragraph (5) the following:
            ``(6) Amount of payroll costs.--For purposes of determining 
        eligibility for and the amount of loan forgiveness under this 
        section, the Administrator may not require an eligible 
        recipient to use more than 50 percent of the proceeds of a 
        covered loan for payroll costs.''.
    (c) Application.--The amendments made by this section shall apply 
to loans made under section 7(a)(36) of the Small Business Act (15 
U.S.C. 636(a)(36)) before, on, or after the date of enactment of this 
Act.

SEC. 3. 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.--The amendment made by subsection (a) 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 
(Public Law 116-136).
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