The Small Business Administration (SBA) has released new interim final rules (IFRs) and guidance for the Paycheck Protection Program (PPP), which was reactivated through the Economic Aid Act as part of the Consolidated Appropriations Act, 2021. This authority to make PPP loans (including First Draw and Second Draw loans) is extended through March 31, 2021. The new releases include:
- Interim final rule on the Paycheck Protection Program as amended by the Economic Aid Act
- Interim final rule on Second Draw Loans
- SBA guidance on accessing capital for minority, underserved, veteran, and women-owned business concerns
The interim final rules become effective upon filing with the Federal Register. Additional guidance, including application forms, will be forthcoming.
SBA indicates that it will accept PPP loan applications only from community financial institutions “for at least the first two days” when the PPP loan portal re-opens. All lenders are instructed to encourage borrowers to report the optional demographic information to better inform lenders and the SBA on the success of efforts to reach minority, underserved, veteran, and women-owned businesses.
A Regulatory Alert summarizing highlights of the PPP changes provided by the Consolidated Appropriations Act, 2021, which was signed into law on December 27, 2020, is available here.