H.R. 7010 — what changed

removed 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) the term covered period means, subject to subsection (l), the period beginning on the date of the origination of a covered loan and ending the earlier of—

“(A) the date that is 24 weeks after such date of origination; or

“(B) December 31, 2020;”

changed “(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 proportional reduction in the number of full-time equivalent employees if an eligible recipient—recipient, in good faith—

changed “(A) is unable able to rehire an individual who was an employee of the eligible recipient on or before February 15, 2020;document—

changed “(B) is able to demonstrate “(i) an inability to hire similarly qualified rehire individuals who were employees of the eligible recipient on or before December 31, February 15, 2020; orand

changed “(C) is able to demonstrate “(ii) an inability to return to the same level of business activity as such business was operating at prior to February 15, 2020.hire similarly qualified employees for unfilled positions on or before December 31, 2020; or

changed “(8) No limitations—In carrying out this section, “(B) is able to document an inability to return to the Administrator may not limit same level of business activity as such business was operating at before February 15, 2020, due to compliance with requirements established or guidance issued by the non-payroll portion Secretary of a forgivable covered loan amount.”Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration during the period beginning on March 1, 2020, and ending December 31, 2020, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19.

added “(8) Limitation on forgiveness—To receive loan forgiveness under this section, an eligible recipient shall use at least 60 percent of the covered loan amount for payroll costs, and may use up to 40 percent of such amount for any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation), any payment on any covered rent obligation, or any covered utility payment.”

“(l) Application to certain eligible recipients—An eligible recipient that received a covered loan before the date of enactment of this subsection may elect for the covered period applicable to such covered loan to end on the date that is 8 weeks after the date of the origination of such covered loan.”

added “(v) Rule of construction—If an eligible recipient fails to apply for forgiveness of a covered loan within 10 months after the last day of the covered period defined in section 1106(a) of the CARES Act, such eligible recipient shall make payments of principal, interest, and fees on such covered loan beginning on the day that is not earlier than the date that is 10 months after the last day of such covered period.”

removed Section 2302(a) of the CARES Act (Public Law 116–136) is amended by striking paragraph (3).

removed 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.