SBA Issues Application Forms for New and "Second-Draw" PPP Loans
Client Alert | 1 min read | 01.11.21
On January 8, 2021, the Small Business Administration (SBA) issued revised Paycheck Protection Program (PPP) Borrower Application forms for new “first-draw” loans and “second-draw” loans for prior PPP borrowers. SBA and the Treasury Department also announced that the PPP will re-open the week of January 11 for new borrowers and certain existing PPP borrowers eligible for second-draw loans.
Congress has set aside $284 billion for this next round of PPP loans. At the outset, in furtherance of Congress’ expressed intent to provide access to underserved communities, only community financial institutions will be able to make first-draw loans starting on Monday, January 11, and second-draw loans on Wednesday, January 13. The PPP will open to all lenders shortly thereafter. While this new round of loans is theoretically open through March 31, 2021, prospective borrowers are reminded that the initial round of PPP funding in April 2020 dried up quickly.
As discussed in prior alerts, this latest round of PPP funding comes with changes to borrower eligibility requirements (which differ between first and second-draw loans), the use of loans proceeds, loan forgiveness coverage, the loan forgiveness application for loans under $150,000, and more. Borrowers should pay close attention to the new requirements and be prepared to submit supporting documentation in response to a future audit for, among other things, the economic necessity of its new loan request.
Crowell & Moring stands ready to assist with any questions regarding the new loan applications, the eligibility requirements for either first or second-draw loans, the myriad “good faith” certifications required in the applications, or any other questions arising from the application process.
Contacts
Insights
Client Alert | 3 min read | 06.12.26
DOJ Guidance Backs Away From Disparate Impact Liability
On June 9, 2026, the U.S. Department of Justice (DOJ) issued a formal opinion concluding that the Equal Opportunity Employment Commission’s (EEOC) existing interpretations of Title VII of the Civil Rights Act of 1964 (Title VII) disparate-impact liability, including the Uniform Guidelines on Employee Selection Procedures (UGESP), are unconstitutional. According to the opinion, EEOC’s prior interpretations contemplate liability based on disproportionately adverse effects alone, without regard to an employer’s likely intent, rather than treating disparate impact as an evidentiary mechanism to “smoke out” intentional discrimination. DOJ found that this approach functions as a “qualified racial-proportionality mandate” that places “a racial thumb on the scales, often requiring employers to evaluate the racial outcomes of their policies, and to make decisions based on (because of) those racial outcomes.” The opinion fulfills one mandate of Executive Order 14281, which rejected disparate-impact liability insofar as it “creates a near insurmountable presumption that unlawful discrimination exists wherever there are any differences in outcomes among different [demographic groups].”
Client Alert | 4 min read | 06.12.26
Auto Dealers: The FTC Is Back in the Driver’s Seat — Warning Letters Signal Renewed Federal Scrutiny
Client Alert | 13 min read | 06.12.26
Client Alert | 4 min read | 06.12.26
