Paycheck Protection Loans: Round 2

On December 21, 2020, Congress passed a $900 billion Covid-19 aid bill that included $284 billion for the renewal and expansion of the Paycheck Protection Program (PPP) enacted earlier this year. Highlights of the new PPP loan provisions include:

• Second PPP Loan. The new bill allows certain borrowers who have borrowed previously under the PPP to borrow again, with the new loans being referred to as second draw loans.
• New loan size and employee limitations. The second draw loan limit is $2 million, down from $10 million for the initial round of PPP loans, and to qualify for a second draw PPP loan, the borrower may not have more than 300 employees, down from the original 500 employee maximum in the first round.