Congress Reopens the Paycheck Protection Program
Post date
January 22, 2021
Body
The Paycheck Protection Program (“PPP”), one of the pillars of the economic stimulus enacted in response to COVID-19, reopened last week after Congress appropriated more than $284 billion to make loans to small- and medium-sized businesses under the program.
With the recent passage of the Consolidated Appropriations Act of 2021 (“CAA”), however, Congress reopened the PPP for both new and existing borrowers; expanded the purposes for which PPP loan proceeds may be used; and clarified the federal income tax treatment of PPP loans. The PPP will remain open through March 31, 2021, or until the program’s funding is exhausted.