In December, Congress convened to discuss the federal government’s 2021 operating budget, resulting in the passage of the Consolidated Appropriations Act, 2021 (the “Act”) on December 27th. Nestled within its nearly 6,000 pages was a second COVID-19 stimulus package providing approximately $900B in pandemic aid, including a renewal of the Paycheck Protection Program (PPP) that was originally established under the CARES Act last Spring.

Last week, the Paycheck Protection Program (PPP) application deadline was extended from June 30, 2020 to August 8, 2020. According to reports from the Small Business Administration, the government agency that administers the PPP loans, approximately 4.9 million loans totaling over $520 billion have been approved, with about $130 billion in funding remaining to help small businesses. Congress is currently debating whether small, harder-hit businesses should be allowed a second round of funding under the program.

Since our last update, there have been several important changes to the Paycheck Protection Program under the CARES Act. On June 5th, Congress passed the Paycheck Protection Program Flexibility Act (PPFA), effectively amending the PPP by modifying certain provisions related to loan forgiveness and loosening guidelines for borrowers. Also, in an on-going effort to support PPP borrowers, the Treasury Department has issued additional guidance, including new interim final rules and additional FAQs.

Below are the key points of each: