The basis for the Paycheck Protection Program, also known as PPP, in the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020, was (and remains) compelling. Every day more and more small businesses give in to the reality that the existing PPP with its payroll threshold and eight-week horizon is not going to solve their problems. Absent modifications to the program, the benefits of a third round of funding seem questionable.

This article uncovers the issues with the PPP’s forgiveness requirements and provides lessons learned small businesses should consider from the first two rounds of payments.