Business Loan Program Changes and PPP First-Draw Loan Terms as Amended by Economic Aid Act

On January 6, 2021, the Treasury Department released an interim final rule discussing changes to the Business Loan Program and the Paycheck Protection Program (PPP) as amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act) signed into law on December 27, 2020. The interim final rule covers a variety of topics, primarily summarizing changes made to the PPP loan program in the text of the Economic Aid Act and restating the regulations issued pursuant to the CARES Act and Paycheck Protection Program Flexibility Act.

To read the full text of this Duane Morris Alert, which outlines the key takeaways from the interim final rule and provides a list of the changes that will affect both PPP borrowers and PPP lenders following passage of the Economic Aid Act, please visit the firm website.

December 2020 COVID-19 Relief Bill

On December 22, 2020, the United States Congress passed an omnibus spending bill (the December relief bill) that included significant revisions and additions to the Paycheck Protection Program (PPP) established by the Coronavirus Aid, Relief and Economic Security Act (CARES Act), and previously amended by the Paycheck Protection Program Flexibility Act (PPP Flexibility Act). President Trump signed the bill on December 27, 2020.

Duane Morris has published two Alerts on the December relief bill.

For businesses of 300 or fewer employees, there will be an opportunity to receive a second PPP loan, provided that certain other criteria are met. The first Alert, “Second PPP Loans Available for Certain Businesses; Changes to PPP Loan Terms and Conditions,” summarizes the criteria for the “second-draw” loans available for certain businesses.

The second Alert, “Shuttered Venue Operator Grants,” covers economic opportunities for businesses impacted by COVID-19, including Shuttered Venue Operator Grants for live venue operators, entertainment businesses, arts and cultural organizations and others listed below that have been severely impacted by COVID-19 and related government and industry restrictions.