Tuesday, December 29, 2020
On December 27, 2020, President Trump signed into law the latest COVID-19 relief package, providing $900 billion in much-needed aid to individuals and businesses during the ongoing coronavirus pandemic. A crucial part of this overdue legislation is the more than $284 billion allotted for a new round of Paycheck Protection Program (PPP) funding. This current round of PPP funding extends through March 31, 2021, or until the funding is exhausted. Critically, the legislation also avoids a government shutdown.
Of the more than $284 billion in additional funding allocated to the PPP, $35 billion is set aside for first-time borrowers, $15 billion of which will be set aside for smaller, first-time borrowers with 10 or fewer employees, or loans less than $250,000 in low-income or moderate-income neighborhoods. In addition, $25 billion of the new PPP funding will be set aside for second draw PPP loans for smaller borrowers with ten or fewer employees, or loans less than $250,000 in low-income or moderate-income communities. The U.S. Small Business Administration (SBA) is permitted to adjust the set-asides as necessary 25 days after the enactment of the legislation (which will be Jan. 21, 2021, allowing the Biden administration to make this decision).