
Robert A. Marsico
Partner
201-896-7165 rmarsico@sh-law.comFirm Insights
Author: Robert A. Marsico
Date: February 17, 2021
Partner
201-896-7165 rmarsico@sh-law.comThe Paycheck Protection Program reopened on January 19, 2021, with an additional $284.5 billion in new funding awarded under the COVID-19 relief bill enacted last month. PPP loans will continue to be available to provide economic relief to small businesses adversely impacted by the pandemic. In some cases, businesses that previously participated in the program may be eligible for a second draw.
The SBA reopened the PPP for First Draw PPP Loans the week of January 11, 2021. It began accepting applications for Second Draw PPP Loans on January 13, 2021. Unless further extended, the application period for both PPP loans will end on March 31, 2021.
On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Economic Aid Act”) became law; it extends the authority to make PPP loans through March 31, 2021, and revises certain PPP requirements. Below is a brief summary of some of the key changes, as set forth in the SBA’s latest interim final rule:
Eligible entities can apply for a First Draw PPP Loan until March 31, 2021 using the Paycheck Protection Program First Draw Borrower Application Form.
The Economic Aid Act authorized the SBA to guarantee Paycheck Protection Program Second Draw Loans. Second Draw PPP Loans will generally be subject to the same terms, conditions, and processes as First Draw PPP Loans. Most importantly, the principal balance may be completely forgiven.
Funds from Second Draw PPP Loans can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector, the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
As set forth in the SBA’s interim final rule, a borrower is generally eligible for a Second Draw PPP Loan if the borrower:
Entities interested in applying for a Second Draw PPP Loan must submit SBA Form 2483-SD (Paycheck Protection Program Second Draw Borrower Application Form) or the lender’s equivalent form, including required certifications and documentation.
We encourage businesses interested in applying for PPP loans to act quickly. If you need any assistance in regard to a Paycheck Protection Program First or Second Draw Loan or any of the Federal COVID-19 aid programs now available, please contact us. We have a dedicated team of attorneys here to help.
If you have any questions or if you would like to discuss the matter further, please contact me, Robert A. Marsico, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!