With the most recent federal pandemic relief bill finally passed into law in late December, there are several key wins for PPP lenders in the 2.0 legislation, notably the eased forgiveness process as well as stronger hold harmless protections when lenders rely in good faith on information provided by borrowers. Nevertheless, the legislation leaves several industry requests unmet or only partially met. Additionally, the new 2.0 standards will create new challenges lenders didn’t initially face in 1.0.
In this flash report, we review the key provisions of PPP 2.0, highlight the significant changes from PPP 1.0, and address some of the key challenges lenders are likely to face as the process unfolds.