Restarting the Paycheck Protection Program: SBA Rules

Summary

The appropriations act signed on December 27, 2020 revived the original Paycheck Protection Program, with some changes (now referred to as a "first draw" loan) and created a new "second draw" PPP loan for borrowers that have spent their first PPP loan. SBA has recently provided guidance on the restart of the program, including start dates and some procedures, and issued two new interim final rules – one for first draw loans and one for second draw loans. This article discusses the program start-up and highlights key provisions of the two new implementing rules.