On Monday, December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021 (CAA), which contains a $900 billion COVID-19 relief package that, among many other initiatives, reauthorizes and modifies the Paycheck Protection Program (PPP). The PPP, implemented by section 1102 of the CARES Act, expanded the Small Business Administration (SBA) 7(a) loan program to provide up to $349 billion (increased by an additional $310 billion on April 24) in 100 percent federally-guaranteed loans to small employers and eligible self-employed individuals impacted by COVID-19. These loans were designed to be forgiven if program requirements are met. Forgiven loan proceeds are excluded from gross income, and the CAA clarified that expenses paid with PPP loan proceeds remain deductible. At the close of the program on August 8, 2020, $525,012,201,124 in loan funds were distributed, and $133,987,798,876 remained on the table.
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