On March 12, President Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”), a $1.9 trillion COVID-19 relief package.  This article discusses the ARP’s modifications to the Paycheck Protection Program (“PPP”).

The ARPA allocates an additional $7.25 billion to the U.S. Small Business Administration (”SBA”) for the PPP.  The ARPA also expands the scope of qualifying nonprofits.  Additionally, the ARPA provides that recipients of PPP loans issued after December 27, 2020 will retain eligibility for grants under the Shuttered Venue Operators program that the SBA is relaunching as part of the Plan.  The deadline to apply for a PPP loan remains March 31, 2021.