Originally published on December 30, 2020. Last updated as of January 3, 2021.
Summary of Key Changes and Expansion of the Paycheck Protection Program under the Consolidated Appropriations Act, 2021
On December 27, 2020 the Consolidated Appropriations Act, 2021 – containing a new $900 billion COVID-19 relief stimulus package – was signed into law. The Act includes significant modifications and extensions of the Paycheck Protection Program (“PPP”) including: (i) extending the original program until March 31, 2021; (ii) increasing the list of eligible borrowers and the permitted uses of PPP loans; (iii) creating a new “second draw” loan program aimed at providing additional assistance of up to $2 million to PPP borrowers that have exhausted their original PPP loan; and (iv) making significant changes to the interaction between the PPP loan programs and various tax incentives provided by the Cares Act. The Proskauer interdisciplinary coronavirus taskforce breaks down the changes to the PPP in this new law.
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