PPP Loans Reopened Yesterday

SBA
January 12, 2021
Yesterday, the U.S. Small Business Administration, in consultation with the Treasury Department, reopened a portion of the Paycheck Protection Program (PPP) for new borrowers and certain existing PPP borrowers.
Beginning yesterday, only community financial institutions received initial access to the First Draw PPP Loans, and will gain access to the Second Draw PPP Loans on Wednesday. Following applications from community institutions, the PPP will then open to all other participating lenders.

Key PPP Updates:

  • Borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs.
  • Loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
  • Eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations.
  • Provides greater flexibility for seasonal employees.
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount.
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

Those Eligible for Second Draw PPP Loan:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses.
  • Has no more than 300 employees.
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

For more details, or to apply for a PPP Loan, click here.