SBA – New Rules for PPP, Applications Accepted the Week of January 11

Paycheck Protection Program (PPP) Policy Update – Thursday, January 8, 2021

SBA, in consultation with the Treasury Department, has recently released additional PPP guidance:

• SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns  (Released 1/6/2021)
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act (Released 1/6/2021)
• Interim Final Rule on Second Draw Loans (Released 1/6/2021)

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES

Additional rules, procedures and forms will be released over the coming days and weeks.  Key takeaways from these two rules and guidance:

• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
• For certain borrowers the original PPP loans may be increased if new rules apply and the loan has not already been forgiven
• EIDL advances are no longer deducted from PPP forgiveness; lenders will receive a reconciliation payment for loans already forgiven

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
• Has no more than 300 employees
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Coming Soon:

• New application forms for PPP Second Draw Loans
• Updated forms 2483 and 2484 for PPP First Draw Loans
• New forgiveness application forms
• Additional IFRs, procedural notices and resources regarding PPP forgiveness process, EIDL grants, and Sheltered Live Venues grants

Additional updates will be provided as details are received. Subscribe to updates below and follow us on Twitter for the latest information.