New Year, New PPP Loans

Executive Summary

On December 27, 2020 President Trump signed the Consolidated Appropriations Act, 2021 (the “Act”) into law, which provides $900 billion in additional COVID relief funds. Specifically, as part of the Act, the “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” (the “Economic Aid Act”) reopened the Paycheck Protection Program (“PPP”) as administered by the Small Business Administration (“SBA”), expanded the types of expenses that are eligible for loan forgiveness, and established a second draw of PPP loans. The following are the highlights of the new provisions. The SBA is expected to issue regulations and further guidance that implement the new provisions soon.