SBA Issues Updated Procedural Notice on First Draw PPP Loan Increases
The SBA recently published Procedural Notice Control No. 5000-809631 relating to Updated Notice on First Draw PPP Loan Increases After Enactment of the Economic Aid Act. As a reminder, the Economic Aid Act was signed into law on Dec. 27, 2020 and, among other things, created the Second Draw Loan option. The PPP Extension Act of 2021 extends the PPP through June 30 of this year and restricts the SBA’s ability to accept new PPP loan applications after May 31. This procedural notice modifies the Economic Aid Act Loan Increases Notice to reflect the Extension Act. Procedural Notice Control No. 5000-809631 addresses:
- Increases on First Draw PPP Loans approved on or before August 8, 2020 to Eligible Partnerships, Seasonal Employers, and Farmers and Ranchers;
- Reapplications by Eligible Borrowers that Fully Repaid a First Draw PPP Loan before December 27, 2020;
- Re-disbursements to Eligible Borrowers that Returned Part of a First Draw PPP Loan before December 27, 2020;
- Increases for Eligible Borrowers that did not accept the Full Amount of a First Draw PPP Loan for which they were Approved on or before August 8 2020; and
- Unresolved Borrowers.
Read Procedural Notice Control No. 5000-809631HERE.