COVID-19 “Phase IV” Stimulus: Latest Stimulus Legislation Provides Additional Coronavirus Relief

Sullivan & Cromwell LLP - January 5, 2021

On December 27, 2020, President Trump signed into law the 2021 Consolidated Appropriations Act (the “Act”), which provides approximately $900 billion in coronavirus relief. This memorandum summarizes key financial services-related provisions of the Act, including (1) the extensive revisions made to the Small Business Administration’s Paycheck Protection Program (the “PPP”), (2) the authorization of emergency community development programs, (3) the extension of certain temporary suspensions and modifications of regulatory provisions applicable to banking institutions, and (4) the termination of certain lending facilities and lending authority created by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Act represents the first comprehensive legislative response to the pandemic since the CARES Act in the spring, and the first major legislative update to the PPP since the Paycheck Protection Program Flexibility Act signed into law on June 5, 2020.

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