The Federal Reserve has issued an interim final rule to extend relief for certain loans guaranteed under the Small Business Administration's Paycheck Protection Program (PPP) until March 31, 2021. This extension also includes PPP second draw loans and exempts insider loans from certain banking regulations if these loans pose minimal risk. This rule aims to facilitate lending to small businesses owned by bank insiders, ensuring they have access to financial resources without being hindered by restrictions. The public is invited to comment on the rule until April 5, 2021.
Simple Explanation
The Federal Reserve made a temporary rule that lets certain special loans to small businesses keep going until the end of March 2021 so that people who work at banks can get loans to help their businesses too, as long as it’s not risky.