Last night, the COVID Relief Bill known as the “Consolidated Appropriations Act, 2021” which includes “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” was signed into law.

General highlights for lending institutions includes:

  • Another round of Paycheck Protection Program (PPP) loans called a “PPP second draw”, with a maximum new loan amount of $2 million;
  • Alleviates the requirement for Lenders to send Form-1099 to each borrower;
  • Expanded coverage for allowable expenses and forgivable uses for PPP funds;
  • Simplified PPP application process for loans under $150,000;
  • Increased 7(a) loan guarantee form 75% to 90% through September 30, 2021;
  • Extension of Section 1112 Payments for loans guaranteed by the SBA under the 7(a), 504, and Microloan programs through September 30, 2021; and,
  • Increased the Express Loan program amount from $350,000 to $ 1 million from January 1, 2021 through September 30, 2021.