January 9, 2021
SBA Releases New Application and Guidance on PPP Loans
The SBA released a new application and two Interim Final Rules (IFRs) this week that clarify how businesses and nonprofits can qualify and apply for the second round of Paycheck Protection Program (PPP) loans under the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act).
According to the new guidance, the second round of loans will be issued under many of the same terms as first draw loans, such as the 5-year maturity date, 1% interest rate, full loan forgiveness potential and good faith certification requirement.
In addition, the IFRs provide the following updates and clarifications:
The IFRs also explain the methodologies for calculating eligibility requirements and maximum loan size for second draw PPP loans.