On January 8, 2021, the U.S. Small Business Administration (SBA) released the Borrower Application Form, SBA Form 2483, for businesses applying for a First Draw PPP Loan or requesting an increase in their First Draw PPP Loan. Existing borrowers seeking a Second Draw PPP Loan will need to submit the Second Draw Borrower Application Form, SBA Form 2483-SD.
On January 6, 2021, the U.S. Small Business Administration (SBA) issued the Interim Final Rule on Second Draw Loans (the IFR). The IFR announces the implementation of section 311 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act), a component of the Consolidated Appropriations Act, 2021 (the Act), which authorizes the SBA to guarantee additional loans under the Paycheck Protection Program (PPP).
The Consolidated Appropriations Act, 2021 (the “Act”) was passed by Congress on December 21, 2020, and signed into law by President Donald Trump on December 27, 2020. This is the second-largest federal stimulus package approved by Congress this year following the $2 trillion CARES Act passed in March 2020.
On Sunday December 27, 2020 President Trump signed the Consolidated Appropriations Act of 2021 (the Act) which included several enhancements to the Employee Retention Credit (ERC). The most prominent change is that businesses that received a loan pursuant to the Paycheck Protection Program (PPP) are now eligible for the ERC.
Below is a summary of the proposed details on the Emergency Coronavirus Relief Act that was recently released. The proposed legislation includes significant updates to the Paycheck Protection Program (PPP). If approved, the bipartisan bill will make $267.5 billion additional funds available for PPP loans and $13.5 billion for Economic Injury Disaster Loans also overseen by the Small Business Association.
The Small Business Administration (SBA) published in late October that it will begin issuing loan necessity questionnaires to Paycheck Protection Program (PPP) borrowers with PPP loans of over $2 million. The loan necessity questionnaires will be utilized by the SBA to review the PPP borrower’s good-faith certifications of economic need. There are two versions of the questionnaire: Form 3509 that will be used by for-profit borrowers, and Form 3510 that will be used by non-profit borrowers.
It’s the morning commute, and traffic is stopped in both directions as I wait for new goslings and their parents to cross the road. The goslings are a bit wobbly and must be shown the right direction as they learn their way. I admire the cute creatures as they continue their journey and observe the reaction of others in their cars taking pictures of the adorable, fluffy animals. The stopped traffic was inconvenient, yet everyone seemed to give grace to these new little ones finding their way.
Scrolling through Facebook I stumbled across an ad and read a quote the ad highlighted:
"Life isn’t about waiting for the storm to pass…It’s about learning to dance in the rain!" – Vivian Greene.
I am one that likes to plan, have clarity, and feel in control. Well, 2020 certainly has challenged me in these areas. Regardless, I still have a choice. One option is to feel like a victim, get angry, be annoyed, complain about the situation, and feel sorry for myself. Been there, done that! Not fun or productive.
On Wednesday evening, the U.S. Senate approved H.R. 7010, a bill that will dramatically change critical terms to the Small Business Administration's Paycheck Protection Program, providing much needed relief for borrowers.