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New Paycheck Protection Program (PPP) Is Approved by Congress

Client memorandum | December 28, 2020

On December 27, 2020, the Economic Aid Act was signed into law. The Act renews the Payroll Paycheck Program (PPP), which provides low-interest, forgivable loans to small businesses for specified purposes. Businesses that previously received (and fully used) a PPP loan will be eligible to apply for a new loan, but subject to more restrictive eligibility requirements. The Act also expands the permitted uses for the proceeds of PPP loans (whether previously or newly issued)—most significantly, including in the permitted uses payment for essential supplies and for adaptations to comply with pandemic-related health and safety guidance. We summarize the key provisions in the attached memo.

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