The SBA issued new forms and guidance in response to the enactment of the Consolidated Appropriations Act, 2021. We have discussed the guidance released around the program in detail here
Further, the SBA announced it would be opening its application portal for a limited subset of borrowers during the week of January 11, 2021. Specifically, the PPP will re-open for community financial institutions to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. It is expected lenders will need additional time to adjust and open their application portals.
Here is a rundown of the latest information, all of which can be found on the U.S. Treasury’s webpage dedicated to the PPP. For simplicity, PPP1 refers to the first round of PPP loans (First Draw PPP Loans), and PPP2 refers to the second round (Second Draw PPP Loans.
- Top-line overview of PPP1 loans. This 1-page document provides a high-level overview of the PPP1 loan program that opened on April 3, 2020, and discusses the limited reopening of this program for borrowers who previously returned some or all of their PPP1 loans, and for borrowers who previously did not accept the full amount for which they are eligible.
- Borrower application form for borrowers that obtain a new or upsized loan under PPP1.
- Top-line overview of PPP2 loans. This 1-page document provides a high-level overview of PPP2 loan program.
- Borrower application form for borrowers under PPP2.
- Guidance on accessing capital for minority, underserved, veteran, and women-owned business concerns. This 3-page document is informational in nature.
- There are also numerous documents intended for lenders to use as they submit loan requests to the SBA.
We expect more documents to come in the near future, e.g., the new simplified loan forgiveness application for loans of $150,000 or less.
Withum tax advisor.
Coronavirus Resource Center
