Revised Paycheck Protection Program Reopens Today—New Second Draw PPP Loans to Follow

11 January 2021
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Key takeaways:
  • On December 27, 2020, the President signed the Consolidated Appropriations Act, 2021 following its passage with bipartisan support in the U.S. House of Representatives and the Senate.
  • Part of the new law reopens the Paycheck Protection Program (“PPP”), which previously closed on August 8, 2020, until March 31, 2021 and revises the PPP.
  • As part of the PPP revisions, certain smaller PPP borrowers that have used the full amount of their PPP loans will have access to forgivable “second draw” loans in an amount up to $2.0 million.
  • The Small Business Administration reopened the PPP as of January 11, 2021 and published two interim final rules on the PPP, including one that helpfully consolidates the previously issued interim final rules and important guidance to date regarding the PPP.