On December 27 2020, the President signed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act an integral portion of the Consolidated Appropriations Act of 2021 (the “Act”) addressing changes to the rules regarding PPP loans, including making a supplemental PPP2 loan available to many PPP1 borrowers and increasing the types of business expenses that can be forgiven.
Among many other changes, the Act provides the following key changes in regards to the PPP lending program:
- Funding to allow the hardest-hit small businesses to receive a second forgivable Paycheck Protection Program loan.
- Eligibility would be limited to small businesses with 300 or fewer employees that have sustained a 30 percent revenue loss (details to come)
- Forgivable expenses are expanded to include supplier costs and investments in facility modifications and personal protective equipment to operate safely.
- EIDL grants no longer reduce the allowed forgiveness amount of PPP loans.
- Loan forgiveness process is simplified for borrowers with PPP loans of $150,000 or less
We are still awaiting the final instructions from the Department of the Treasury and SBA. The SBA has 10 days after the bill is enacted to establish lending rules and regulations. We are preparing to begin offering these loans as quickly as possible. For PPP program updates, please continue to visit this page. For PPP program questions, please email secondPPP@fremontbank.com
Thank you for your partnership.
EVP and Chief Credit Officer