Paycheck Protection Program Resource Center
On December 27, 2020, the Consolidated Appropriations Act, 2021 including the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues was signed into law. The Act reinstated the Paycheck Protection Program (“PPP”), provided the ability to obtain a Second Draw PPP Loan, simplified forgiveness for PPP loans under $150,000, added additional eligible forgiveness expenses, and added more businesses eligible for a PPP loan.
First Draw PPP Loan
Eligible businesses may apply for a First Draw PPP loan if they have not received a previous PPP loan. Eligible businesses are small businesses (together with their affiliates) that have 500 or fewer employees at the time of application. These businesses also include sole proprietorships, independent contractors, self-employed persons, 501c(3) and 501c(19) organizations, and news organizations. Housing cooperatives, 501c(6) organizations, marketing destination organizations are also eligible but are limited to no more than 300 employees.
For additional information, please visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/first-draw-ppp-loans.
Second Draw PPP Loan
Certain eligible borrowers that received a First Draw PPP loan can obtain a Second Draw PPP loan. General terms are the same as the First Draw PPP loan.
For additional information, please visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/second-draw-ppp-loans.
PPP Loan Forgiveness
Both First and Second Draw PPP loans are eligible for forgiveness. Full forgiveness is generally available (subject to certain restrictions and exceptions) if, during the 8 to 24 week covered period, the Borrower maintains the same employee and compensation levels, loan proceeds are spent on payroll costs and other eligible expenses, and at least 60% of loan proceeds are spent on payroll costs.
For additional information, please visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/ppp-loan-forgiveness.