Monday, January 11, 2021
Certain foreign-owned or controlled U.S. businesses are eligible to apply for potentially forgivable loans under the second round of the Paycheck Protection Program ( PPP ) included in the recently enacted Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (P.L. 116-260). Applications can be submitted until March 31, 2021. The U.S. Small Business Administration ( SBA ) and the Department of Treasury recently issued two interim final rules ( IFRs ) which describe the eligibility requirements under which foreign-owned or controlled U.S. applicants can apply for
second draw funding for applicants previously receiving PPP loans.
Size Eligibility Requirements
As was the case in the first round of PPP loans, eligibility for second round PPP loans is based on the SBA s affiliation counting rules. Accordingly, the U.S. applicant must include not only its U.S. employees, but also all employees of the U.S. applicant s domestic and
To embed, copy and paste the code into your website or blog:
The President signed new stimulus legislation into law on December 27, 2020. The new law, the
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260 (“Economic Aid Act”), authorizes new and additional PPP loans and modifies the CARES Act for this purpose. The Economic Aid Act authorizes funds of $284.5 billion for PPP loans, and which includes $35 billion for first-time borrowers. The United States Small Business Administration (SBA) and the United States Treasury also issued new guidance interpreting the new law.
The new SBA/Treasury guidance, released in the form of two “interim final rules”, separately addresses the requirements and issues for borrowers who seek their first PPP loan (“First Draw PPP Loan(s)”) and also borrowers that already received a PPP loan in 2020 and who may now qualify for an additional and second PPP loan (“Second Draw PPP Loan(s)”).
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, have reopened the Paycheck Protection Program (PPP) for new borrowers and certain existing PPP borrowers. The PPP will open to all participating lenders shortly thereafter.
On December 27, 2020, President Trump signed into law the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), which, among other things,.