SBA Begins Rolling Out Guidance for New PPP and PPP Second Draw Loans

Crowell & Moring – On January 7, 2021, the Small Business Administration (SBA) released two Interim Final Rules (IFRs) regarding amendments to the Paycheck Protection Program (PPP) by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act). The Consolidated First Draw PPP IFR helpfully restates regulatory provisions and guidance to provide lenders and new PPP borrowers a single regulation to consult on borrower eligibility, lender eligibility, and loan application and origination requirement issues for new First Draw PPP loans, as well as general rules relating to First Draw PPP Loan increases, permissible loan uses, and loan forgiveness.