top of page

New Guidance for Paycheck Protection Program (PPP2)

Late Wednesday night (January 6), the Department of the Treasury and Small Business Administration (SBA) updated the Interim Final Rule (IFR) to provide the revised guidance for second draws on the Paycheck Protection Program (PPP2). While there may be some remaining “grey areas” as it relates to PPP2, the IFR explicitly states this PPP2 program will either follow the same rules as PPP1 or that such rules have changed and then states the new rule. Below, we have summarized both the changes and important points for purposes of applying for a PPP2 loan.


Eligibility Requirements


Timing


Today (January 8), the SBA announced when its PPP portal will open for the following borrowers:


January 11, 2021 – First-draw (PPP1) applicants processed through “community financial institutions” only (e.g. Community Development Financial Institutions, minority deposit institutions, certified development companies and microloan intermediaries)


January 13, 2021 – Second-draw (PPP2) applicants processed through “community financial institutions” only (e.g. Community Development Financial Institutions, minority deposit institutions, certified development companies and microloan intermediaries)


“Shortly Thereafter” – All other applicants processed through all participating lenders


General Requirements


An eligible borrower must: