SBA Updates Paycheck Protection Program FAQs

The Small Business Administration has updated their thorough Paycheck Protection Program loan guidance, in light of the Economic Aid Act passed in December 2020 and several Biden Administration rules that modified some of the parameters of the program. Of particular note is the newly-added Question 46, which addresses the criteria for a business to apply for a second-draw PPP loan.

Please note that PPP loan applications can be submitted until March 31. Please click here for more information on the PPP and other COVID-related federal relief options available to small businesses.

We, along with our friends at the National Automobile Dealers Association, encourage all our members to determine whether they are eligible for the Employee Retention Tax Credit. Under the Economic Aid Act, PPP participants can retroactively claim the ERTC for “qualified wages not paid for with PPP loan proceeds.” You can review Internal Revenue Service guidance on this updated rule at this link.

In other important news, the SBA once again has a Senate-confirmed director, as Isabel Guzman was easily approved for the position yesterday by an 81-17 vote.

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