Source: WARD & SMITH, LLC, 12/28/20


On December 27, 2020, President Trump approved a $900 billion COVID-19 relief bill.

In it, Congress appropriates funds to help small businesses, nonprofits, and venues that continue to be hit hard by the impact of COVID-19 through The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Act").  The Act provides assistance to small businesses mainly by revamping the familiar Paycheck Protection Program ("PPP").  The changes to PPP are many and this article does not address every update.  Rather, here are some highlights that you should know. 

How has PPP changed?
The Act changes PPP primarily in three ways.  First, the Act allows new PPP loan applications to be submitted by eligible applicants that never obtained a PPP loan.  Second, the Act permits some businesses that have already obtained a PPP loan to obtain a second PPP loan, called a "PPP second draw."  Third, the Act changes PPP rules—for existing PPP loans, new PPP loans, and PPP second draws—in the areas of eligibility, allowable expenses, forgiveness, and more.  Whether you already have an existing PPP loan, are interested in obtaining a PPP loan, or want to obtain a PPP second draw, the Act makes changes to PPP rules that may be relevant to you.

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