The American Rescue Plan Act of 2021, passed by the House of Representatives on February 17, contains two important sets of provisions for small business lenders: the legislation modifies the Paycheck Protection Program, and it reauthorizes the State Small Business Credit Initiative in order to provide federal support for close to $100 billion in new loans.

The moratorium on evictions imposed by the Centers for Disease Control and Prevention last September and recently extended by the Biden Administration was declared unconstitutional by a federal district court on February 25. The court did not at that time enter a nationwide injunction, however. Similar moratoriums imposed by some states and localities are not affected by the ruling. The impact on a particular multifamily borrower will have to be considered with some care.

The legislation follows up on the budget resolution passed by the Senate early in the morning of February 5. There are three notable provisions for banks that make either small business loans, home mortgage loans, or mortgage loans to rental property owners.