On. Jan 13, the Small Business Administration released a Procedural Notice to lenders related to first draw Paycheck Protection Program loan increases after enactment of the Economic Aid Act, the COVID-19 relief bill signed into law in late 2020.
In an Interim Final Rule released Jan. 6, SBA outlined additional narrow circumstances where certain eligible borrowers may reapply for a new first draw PPP loan or request an increase to a first draw loan that was approved on or before Aug. 8, 2020. First draw PPP loan increases must be made by the lender of record, and this new notice outlines the circumstances of eligibility.
Eligibility categories include eligible borrowers who fully repaid a first draw PPP loan before Dec. 27, 2020; borrowers who returned part of a first draw PPP loan before Dec. 27, 2020; and borrowers who did not accept the full approved amount in a first draw PPP loan. However, if SBA has remitted a forgiveness payment to the lender, no loan increases or reapplications are allowed.
