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:
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:
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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
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PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
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For certain borrowers the original PPP loans may be increased if new rules apply and the loan has not already been forgiven
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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:
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Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
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Has no more than 300 employees
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Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Coming Soon:
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New application forms for PPP Second Draw Loans
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Updated forms 2483 and 2484 for PPP First Draw Loans
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New forgiveness application forms
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Additional IFRs, procedural notices and resources regarding PPP forgiveness process, EIDL grants, and Sheltered Live Venues grants
