SBA, Treasury Release New PPP IFR, Loan Forgiveness Applications, Second Draw Loan Guidance


Jessica L. Jeane, J.D.
Director of Public Policy & Strategic Communications
January 20, 2021

The U.S. Small Business Administration (SBA), in consultation with Treasury, released late in the evening of January 19 a new Paycheck Protection Program (PPP) interim final rule (IFR) and revised loan forgiveness applications. Additionally, the SBA and Treasury released new guidance on how to calculate Second Draw PPP loans.

The IFR, Business Loan Program Temporary Changes; Paycheck Protection Program – Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act, consolidates prior rules related to forgiveness and reviews of PPP loans and incorporates changes made by the Economic Aid Act, including forgiveness of Second Draw PPP loans. 

The latest IFR, as provided above:

  • issues guidance for borrowers and lenders on requirements governing forgiveness of PPP loans, and
  • informs borrowers and lenders of SBA’s process for reviewing loan applications and loan forgiveness applications.

Additionally, the revised PPP loan forgiveness applications and borrower’s disclosure document can be located below:

Second Draw PPP Loans

Notably, the Second Draw PPP loan guidance below clarifies that “gross receipts” for the purpose of determining eligibility for a Second Draw PPP loan for a for-profit business, “generally are all revenue in whatever form received or accrued (in accordance with the entity’s accounting method, i.e., accrual or cash) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances but excluding net capital gains and losses.”

NSA's prior coverage of recently released PPP guidance can be located below:
Treasury, SBA Issue PPP Guidance on First and Second Draw Loans - January 7, 2021
SBA Releases Additional PPP Guidance: Forgiveness Application Resubmissions and Excess Loan Amount Errors - January 17, 2021

All updated PPP resources are available at and  

    The core mission of NSA is to help tax and accounting professionals become more successful.

NSA presents this information in the interest of its members for information purposes only and is not intended to provide, nor should it be relied upon, as legal, tax, or accounting advice.

Return to Blog List


NSA's 75th Annual Convention

Registration is open for NSA's 75th Annual Convention! Click here to register.