Following the enactment of the Consolidated Appropriations Act of 2021 (the Act), on January 6, 2021, the U.S. Small Business Administration (SBA) and Department of Treasury issued guidance for nonprofits and small businesses on how to access the newly allocated Paycheck Protection Program funds.
This guidance includes two interim final rules:
These two interim final rules consolidate the rules for PPP loans made to first-time borrowers and detail how borrowers may access a second PPP loan (also called a “second draw”).
Under the interim final rules, many of the restrictions and potentially negative tax and other consequences for borrowers of first draw PPP loans have been modified or eliminated. The SBA also issued specific guidance for minority, underserved, veteran and women-owned businesses to facilitate their access to PPP funds.
Continue reading for more information on how to access the newly allocated Paycheck Protection Program funds.
*Leni B. Nulsen is admitted to the bar in New York. She is not admitted in Massachusetts.