Signed into law on December 27, 2020, the Economic Aid to
Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Act)
aims to address the continuing challenges posed by the coronavirus
pandemic for small businesses. The Act aims to achieve this in part
by extending the Paycheck Protection Program (PPP), allocating more
than $284 billion for new PPP loans.
The Act (along with recent SBA guidance) revives traditional PPP
loans (now referred to as PPP "first draw" loans) (PPP1)
and creates a new variety of PPP loans (referred to as PPP
"second draw" loans) (PPP2). PPP1 loans are available to
qualified first-time PPP borrowers and PPP2 loans are available to
qualified borrowers who already received and used all funds under a
PPP loan. Both PPP1 and PPP2 loans will be available until March
31, 2021 or until available funds are exhausted.
