Where Are We Now? – Paycheck Protection Program Redux

Summary of Key Changes and Expansion of the Paycheck Protection Program under the Consolidated Appropriations Act, 2021

The Consolidated Appropriations Act, 2021 (the "CAA"), which provides $900 billion in new COVID-19 relief funding, was signed into law on December 27, 2020. Title III of the CAA, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (the "Hard Hit Act"), renews until March 31, 2021 and expands upon the Paycheck Protection Program (Section 36 of Section 7(a) of the Small Business Act) (the "PPP" and loans made under such program, "PPP Loans") implemented by the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). The Hard Hit Act appropriates a total of $284.45 billion for the PPP and the new Paycheck Protection Program Second Draw Loan Program (the "Second Draw Program" and loans made under such program, "Second Draw Loans") (Section 37 of Section 7(a) of the Small Business Act), composed of $147.45 billion