The Small Business Administration (SBA) has issued initial guidance for the Paycheck Protection Program (PPP) COVID-19 relief provisions signed into law last month, including revisions to the loan forgiveness process and opportunities to apply for a second round of PPP forgivable loans. The SBA announced that community development institutions may begin making first draw PPP loans on January 11, second draw PPP loans on January 13, and that PPP will open to all other lenders shortly thereafter.
Independent contractors, sole proprietors, small LLCs, and the self-employed are able to apply for PPP, if they meet the eligibility requirements.
The last day to apply to lenders for a new PPP loan is March 31, 2021 and the guidance goes into effect immediately. The guidance also summarizes existing PPP rules that are continued alongside the new provisions. The amendments to the Paycheck Protection Program loan forgiveness process apply to future loans, as well as loans approved in 2020 that have not yet completed the forgiveness process. The SBA has also summarized plans for SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns.
As a reminder, the latest COVID-19 relief package specifies that applicants will need to choose whether to receive a PPP forgivable loan in 2021, or a Save Our Stages grant. Organizations do not need to own their venue in order to be eligible for a Save Our Stages grant, and complete details regarding eligibility requirements and the timeframe for the application process are not yet available.
Additionally, there is no date certain for the start of the Save Our Stages grant program ($15 billion), to support "live performing arts organization operators." The SBA is currently drafting regulations and guidance, potentially interim final rules like this recent PPP guidance that become effective immediately. Eligible entities will apply directly to the SBA via its portal or through https://www.grants.gov/.
Please check the PAA website and your member organization website for updated and additional information on this and all current issue areas.
SBA Resources Links at a Glance: