Seasonal Business PPP Parity Act
This bill increases the maximum loan amount for second draw loans under the Paycheck Protection Program, which was established to support small businesses in response to the COVID-19 pandemic.
Currently, program participants may receive second draw loans of up to $2 million. Under the program, certain small businesses (e.g., seasonal businesses) were eligible to receive increased amounts for first draw loans based on a revised calculation applicable to those businesses. However, a number of such businesses applied for and received loan forgiveness prior to the application of this revised calculation, which resulted in their receiving a lower amount than that to which they were entitled.
The bill allows businesses that received forgiveness for their first draw loan prior to the implementation of the revised calculation to take advantage of the new calculation in order to receive a larger amount for their second draw loan in addition to the standard loan amount of up to $2 million.