On March 27, 2020, the US government passed the CARES Act in response to the COVID-19 crisis. Under the CARES Act, the Small Business Administration (SBA) offered loans under the Paycheck Protection Program (PPP). On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (Economic Aid Act) (Pub. L. 116-260) was enacted to extend the PPP through March 31, 2021 and to authorize the SBA to guarantee additional PPP loans (Second Draw PPP Loans) to eligible borrowers. On March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) (Pub. L. 117-2) expanded eligibility for first draw PPP loans (First Draw PPP Loans) and Second Draw PPP Loans, revised the exclusions from payroll costs for purposes of loan forgiveness, and provided that a PPP borrower that receives a PPP loan after December 27, 2020 can be approved for a Shuttered Venue Operator Grant under certain conditions. The SBA has issued numerous interim final rules outlining the key provisions for implementing the PPP under each of these acts. For more information, see Practice Notes, Road Map to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act): Paycheck Protection Program and Road Map to the Consolidated Appropriations Act, 2021: Paycheck Protection Program.

On March 30, 2021, the SBA issued a press release announcing that President Biden signed the PPP Extension Act of 2021 (Act) into law, granting a two month extension of the PPP until May 31, 2021, and providing an additional 30-day period for the SBA to process pending PPP applications. The SBA said that the Act will provide additional critical relief to the smallest businesses, namely the mom-and-pop shops that keep our local and regional economies going.

For summaries of the SBA PPP, see:

For additional guidance from the Treasury Department, see: