The President signed new stimulus legislation into law on
December 27, 2020. The new law, the Economic Aid to
Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L.
116-260 ("Economic Aid Act"), authorizes new and
additional PPP loans and modifies the CARES Act for this purpose.
The Economic Aid Act authorizes funds of $284.5 billion for PPP
loans, and which includes $35 billion for first-time
borrowers. The United States Small Business Administration
(SBA) and the United States Treasury also issued new guidance
interpreting the new law.
The new SBA/Treasury guidance, released in the form of two
"interim final rules", separately addresses the
requirements and issues for borrowers who seek their first PPP loan
("First Draw PPP Loan(s)") and also borrowers that
already received a PPP loan in 2020 and who may now qualify for an
additional and second PPP loan ("Second Draw PPP
Loan(s)").
