U.S. Paycheck Protection Program Restarts: Summary of Key Updates

On December 27, 2020, the President signed into law the “Consolidated Appropriations Act, 2021” (H.R. 133) (or the “2021 CAA”), which modifies and reopens the U.S. Small Business Administration’s Paycheck Protection Program initially created under the CARES Act. The reopened Paycheck Protection Program is available through March 31, 2021 and, in addition to being available for first-time program applicants, makes an additional second (or “second-draw”) PPP loan available for certain small and hard-hit existing PPP borrowers.

Goodwin’s Client Alert contains a summary of the key updates this bill makes with respect to Paycheck Protection Program (or “PPP”) loans. Clients seeking to review the statute directly should look to Title III of Division N of the 2021 CAA (referred to as the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act) generally, but for the tax matters noted below should consult Section 276 of Title II of Division N