On January 6, 2021, the Small Business Administration (SBA) issued guidance for implementing the new modified Paycheck Protection Program (PPP) provided under the recently passed FY 21 Consolidated Appropriations Act, Coronavirus Response and Relief Supplemental Appropriations Act. The guidance includes two interim final rules:
- The Business Loan Program Temporary Changes; Paycheck Protection Program as Amended consolidates the rules for PPP forgivable loans for first-time borrowers and outlines changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.
- The Business Loan Program Temporary Changes; Paycheck Protection Program Second Draw Loans lays out the guidelines for new PPP loans to businesses that previously received a PPP loan.
In addition, the SBA released a Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns. The guidance includes a commitment from the SBA to make at least the first two days of the PPP application window open exclusively to applications from community financial institutions that serve minority- and women-owned businesses.
Please note that the new PPP will re-open the week of January 11 with community financial institutions exclusively allowed to make first-draw PPP loans on starting January 11 and second-draw PPP loans starting January 13. The program will open to all participating lenders at an unspecified date shortly thereafter and remain open through March 31.