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an eligible recipient of a PPP covered loan is eligible for forgiveness of indebtedness for
all or a portion of the stated principal amount of the PPP covered loan if certain
conditions are satisfied. Section 304 of the Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act (Economic Aid Act), enacted as Title III of
Division N of the CAA 2021, redesignated, transferred, and amended section 1106 of
the CARES Act (15 U.S.C. § 9005) as section 7A of the Small Business Act, to be
inserted after section 7 of the Small Business Act (15 U.S.C. § 636). Section 276(a)(1)
of the COVID Relief Act amended section 7A(i) of the Small Business Act, as
redesignated, transferred, and amended by the Economic Aid Act, to provide that, for
taxable years ending after March 27, 2020 (the date of the enactment of the CARES
Act), no amount is included in the gross income of an eligible recipient by reason of
forgiveness of a PPP covered loan.
Section 311 of the Economic Aid Act authorizes Paycheck Protection Program
Second Draw (PPP II) covered loans for qualifying businesses (eligible entities)
guaranteed by the Administrator under section 7(a)(37) of the Small Business Act
(15 U.S.C. § 636(a)(37)), and provides that an eligible entity is eligible for forgiveness of
a PPP II covered loan in the same manner as an eligible recipient with respect to a
PPP covered loan made under section 7(a)(36) of the Small Business Act (15 U.S.C.
§ 636(a)(36)). Section 276(b)(1) of the COVID Relief Act provides that no amount of a
forgiven PPP II loan is included in the gross income of an eligible entity.
Sections 3504, 18004, and 18008 of the CARES Act authorize institutions of
higher learning to award emergency financial aid grants to assist students with
unexpected expenses and unmet financial needs that result from a qualifying