Following the enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act in December 2020, the Biden administration announced several changes to the Paycheck Protection Program on February 22, 2021 aimed at providing greater access to funds for underserved businesses and communities. This LawFlash discusses these recent changes, highlighting key provisions and guidance for businesses seeking to participate in the program before it officially expires on March 31, 2021 (pending any additional legislation from Congress).
On February 22, 2021, the Biden administration released a fact sheet that instructs the Small Business Administration (SBA) to increase lending to small businesses in need through the Paycheck Protection Program (PPP) with the goal of changing the PPP to further promote equitable access to relief. These announcements come roughly a month before the PPP is set to expire on March 31, 2021 and follow the recent extension and expansion of the PPP as a result of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (EAA) that was part of the Consolidated Appropriations Act of 2021 enacted on December 27, 2021. Our recent LawFlash discusses the extension and expansion of the PPP, and provides links to important SBA guidance.
From a policy perspective, many of these recent changes to the PPP loan program reflect the Biden administration’s early focus on equity-based decision-making across various federal government agencies, and it is a visible sign that the administration is putting real money behind this platform from the start.
On Monday, February 22, 2021 President Joseph Biden announced several changes to the SBA's coronavirus relief programs to ensure equitable access to funding. On March 3, 2021, the SBA released an interim final rule discussing these changes and how they impact PPP loan calculations and eligibility. The SBA also released an updated FAQ sheet. A summary of the Biden changes is discussed below:
In addition to implementing these recent directives from the Biden administration, the SBA also released updated applications for all applicants (different than Schedule C filers) for First-Draw and Second-Draw loans.
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If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers:
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Andrew T. Budreika
Scott Berman
Michelle Catchur
Andrew P. Rocks
Matthew Sherman
Benjamin W. Stango
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Kristen V. Campana
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Sandra J. Vrejan
Ian M. Wenniger
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David V. Chang
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