On March 27, 2020, the CARES Act was signed into law as one of the first economic aid packages in response to the COVID-19 pandemic. One key provision was funding for the Paycheck Protection Program (PPP). Since then, the PPP has delivered billions of dollars in relief to small businesses hit hard by providing 100% government guaranteed loans and the opportunity for loan forgiveness. As the pandemic has continued to impact businesses around the country, the PPP has evolved. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was signed into law.
This new law allows business that were previously not eligible or have not previously received a PPP loan to apply for a First Draw PPP Loan. It also provides the opportunity for businesses who have already received a PPP loan to receive a Second Draw PPP Loan if they meet certain requirements. We are committed to working through the PPP once again and will continue to provide updates as they are available. Please review the two boxes below to find the loan option that fits your situation.
The forgiveness process for existing PPP loans continues and the loan forgiveness applications can be found in the forgiveness box below. As part of the Economic Aid Act, the forgiveness process for loans of $150,000 and less will be simplified. The SBA has not yet released the new, simplified forgiveness application, but we will continue to update our website as new information becomes available. For borrowers with loans over $150,000, the forgiveness process remains unchanged and you are encouraged to apply for forgiveness once you have gathered the needed documentation, which you can also find in the box below.