What Was Third-Round Paycheck Protection Program (PPP) Funding

The Consolidated Appropriations Act, 2021 (CAA), which President Donald Trump signed into law on December 27, 2020, included new funding for the Paycheck Protection Program (PPP), which expired on August 8, 2020.

The CARES Act established the PPP, which originally included $349 billion in funding. However, that money was gone in two weeks, resulting in a $320 billion second round of funding.

Here are the major takeaways:-  The passage of H.R. 133: Consolidated Appropriations Act, 2021 into law on December 27, 2020, authorised a third round of Paycheck Protection Program (PPP) loans.

PPP loans with a first draw limit of $10 million or 2.5 times a company's average monthly payroll were available.

Loans of up to $2 million were available for businesses that had used funds from their Round 1 or Round 2 loan.

If guidelines were followed, a PPP loan could be forgiven entirely.

The PPP Flexibility Act of 2020, which was passed in 2020, relaxed many PPP loan guidelines.

The passage of the Consolidated Appropriations Act resulted in additional funding and even looser guidelines.

The Biden administration made changes that provided targeted assistance to very small businesses and previously underserved individuals.

The PPP Extension Act, which was passed on March 30, 2021, provided additional guidance and a deadline extension.

Economic Injury Disaster Loans (EIDL) were still available, but the PPP loan programme was terminated on May 31, 2021.