On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, nonprofits, and venues Act (Economic Aid Act) became law. The Economic Aid Act extends the funding for Paycheck Protection Program (PPP) Loans through March 31, 2021. The act revises some requirements for First Draw Funding, and allows certain existing PPP borrowers for a Second Draw PPP Loan.
PPP Loans will be 100 percent guaranteed by the SBA, and the full amount of the loans may qualify for loans forgiveness, provided all requirements are met.
The information below is meant to summarize new interim final rules set forth by the SBA. For full details, please refer to SBA.gov to read ‘Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act’ and ‘Business Loan Program Temporary Changes; Paycheck Protection Program Second Draw Loans.’