The Paycheck Protection Program: Round Three

Congress earmarks an additional $284 billion for the Paycheck Protection Program

On December 27, 2020, the President signed into law a new stimulus package, the Consolidated Appropriations Act, 2021 (the "Act"), which reinstated the Paycheck Protection Program (the "PPP") following its expiration in August 2020 and introduced several material changes to the program. The PPP was initially created in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") in order to support businesses and employees affected by COVID-19.

Congress initially allocated $349 billion in funding to the PPP and subsequently funded the program with an additional $320 billion. As part of the new stimulus package, Congress agreed to reinstate the expired PPP and appropriate an additional $284 billion for the program.¹