PPP Audits And Investigations Practice Client Alert - December 2020

Congress late last night passed legislation modifying the Paycheck Protection Program (the "PPP"). The Consolidated Appropriations Act, 2021 (the "Act") provides $900 billion for COVID-19 related relief, which also includes $285 billion for the restart and expansion of the PPP, is expected to be signed by the President this week. First-time borrowers looking for an initial PPP loan and certain eligible borrowers with existing PPP loans have through March 31, 2021 to apply for the next round of PPP loans (once the SBA starts accepting applications). 

Borrowers with existing PPP loans may be eligible for a second loan, referred to as a Second Draw loan, if they satisfy stricter eligibility requirements. The Act also expands the types of expenses eligible for forgiveness and clarifies that all forgiven PPP loans are excluded from gross income and the expenses paid with those loans are deductible