PPP Round 2: Newly-Authorized Initial And Second Draw Paycheck Protection Program Loans And Other Changes Benefit Borrowers

While many businesses feel like they have gone 12 rounds of boxing with the COVID-19 pandemic and the government measures taken in response thereto, recently enacted reforms to the Paycheck Protection Program ("PPP") are providing a "Round 2" of financing in hopes of enabling certain borrowers on the ropes to avoid throwing in the towel. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Act"), which was passed by Congress on December 21, 2020 and then signed into law by President Trump on December 27, 2020 as part of the Consolidated Appropriations Act, 2021, makes significant changes to the PPP. The Act permits initial and "second draw" PPP loans to be made through March 31, 2021 (subject to availability of funds), and appropriates an additional $284,450,000,000 for such loans, portions of which are set-aside for certain borrowers and lenders. Although it is yet to be determined when the Small Business Administration ("SBA") will resume