Additional PPP Funding Available, Subject To New Eligibility Requirements

On December 27, 2020, President Trump signed into law the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. Among other things, the act allocates additional funds to the Paycheck Protection Program, albeit under new eligibility rules and with other updates.

Under the act, first-time PPP borrowers may continue to borrow under the original PPP (PPP1), subject to some new eligibility restrictions and programmatic improvements noted below. PPP1 was extended until March 31, 2021. The act also authorized second draw PPP (PPP2) loans for second-time PPP borrowers who have exhausted their PPP1 funds. Neither PPP1 nor PPP2 loans are available to publicly traded companies.