January 2021 Paycheck Protection Program update

This information reposted from the Journal of Accountancy:

The SBA and Treasury issued guidance late Wednesday night (1/6/2021) for the new PPP, which shares many of the same rules as the old PPP but also has some significant differences. The guidance came in the form of three documents:

  • An 82-page interim final rule (IFR) called “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act,” which consolidates eight months of rules released for PPP forgivable loans for first-time borrowers and incorporates changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260.
  • 42-page IFR called “Business Loan Program Temporary Changes; Paycheck Protection Program Second Draw Loans,” which establishes guidelines for new PPP loans to businesses that previously received a PPP loan.
  • three-page document called “Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns,” which includes a commitment from the SBA to make at least the first two days of the PPP application window open exclusively to applications from community financial institutions.

Other related documents from SBA: