PPP Reopens Today; Interagency Webinar Offers Guidance

Join Small Business Administration (SBA) and Treasury Department officials today at 2 pm for an overview of the new Paycheck Protection Program (PPP) which reopens today for new borrowers and certain existing PPP borrowers.

Ask the Regulators Webinar
Registration is open to all SBA lenders who participated in the PPP lending program. During the webinar, SBA and Treasury will:

• Provide a timeline for the rollout of the new PPP programs
• Provide an overview of the PPP loan programs including first and second draw loans
• Discuss new forms and guidance

Register Now for the Ask the Regulators Webinar

PPP Program Reopens Today
Initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. SBA has issued new forms and guidance:

PPP First Draw Borrower Application Form (revised 01/08/2021)
PPP Second Draw Borrower Application Form (01/08/2021)
PPP Guidance on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns
Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
Interim Final Rule on Second Draw PPP Loans

Here's what you need to know:
• Second-time loans are limited to businesses with fewer than 300 employees and at least a 25 percent drop in gross receipts in the 2020 quarter compared to the same quarter in 2019. The maximum loan size for second-time borrowers is $2 million. Businesses taking a PPP loan will now be able to take the Employee Retention Tax Credit (ERTC), when previously they were only allowed to opt into one or the other.
• PPP loans can be used to pay qualifying expenses, which have been expanded to include expenses such as covered property damage, supplier costs, or worker protection expenditures in addition to employee wages or operating expenses like rent and utilities. When used for qualifying expenses, PPP loans are forgivable. The bill provides a simplified forgiveness application process for loans up to $150,000.
• Businesses can deduct expenses paid with forgiven PPP loans. This clarification applies to old loans and to new loans and results in a two-part subsidy to businesses comprised of deductions and tax-free loan forgiveness. Lawmakers intended this two-part subsidy when crafting the CARES Act, and the Joint Committee on Taxation scored the original provision as such. This clarification, a kind of technical correction, does not have a budget impact.