On January 6, 2021, the Small Business Administration (SBA)
issued two interim final rules related to Paycheck Protection
Program (PPP) loans under the Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act. In
our prior alert, we described that the act authorized second
draw PPP (PPP2) loans for second-time PPP borrowers who have
exhausted their original PPP loan (PPP1) funds.
As previously noted, to be eligible for a PPP2 loan businesses
must (among other things) have seen at least a 25% decrease in
"gross receipts" in comparable quarters of 2020 relative
to 2019 (with modified tests for businesses that were not operating
in the particular comparable quarter of 2019), but the act does not
define "gross receipts."
