On December 27, 2020, the new stimulus package -- formally called the Consolidated Appropriations Act of 2021 (the CAA) -- became law. That’s good news for small business owners and lenders: one section of the CAA resurrects the Paycheck Protection Program (PPP) with better terms for borrowers.
The original PPP
The PPP was originally established by the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) to make loans to small businesses affected by COVID19-related economic fallout. That was a noble goal, but the original PPP deal expired on August 8, 2020.
The new‐and‐improved PPP
The CAA resurrects the PPP with $284 billion in new funding, liberalized rules, and most importantly, a new second-draw loan program explained below. New PPP loans, including second-draw loans, can be taken out through March 31, 2021 or until the money runs out.
