The U.S. Small Business Administration (SBA) and Treasury issued guidance on January 6, 2021, to provide details on the next round of the Paycheck Protection Program (PPP), which was created as part of the Consolidated Appropriations Act of 2021. The deadline for new loan applications is March 31, 2021, but the SBA has not yet announced a start date for the program.
The SBA issued two new interim final rules to provide more information related to the program. The Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act provides guidelines for for first-time PPP borrowers, and the Interim Final Rule on Second Draw Loans includes updated loan application and forgiveness provisions for businesses that previously received a PPP loan. This detailed guidance will be useful for both borrowers and lenders, who hope to avoid the confusion and continuous changes that were part of the first launch of the program.
Read this Journal of Accountancy article for a summary of loan terms and borrower qualifications for the next round of the PPP program, as well as links to more resources.
GYF will post additional analysis and commentary in the near future, and plans to present a webinar in coming weeks. In the meantime, if you have questions about PPP Loans or other matters related to the latest COVID-relief package, please contact Bob Grossman, Don Johnston or Mike Weber at 412-338-9300