The SBA will open its second PPP portal the week of January 11
In case you were wondering, the U.S. Small Business Administration (SBA) just announced that the Paycheck Protection Program (PPP) will reopen the week of January 11 for new borrowers and some existing PPP borrowers.
To promote access to capital, initially, only community financial institutions will be able to grant first-draw PPP loans on Monday, January 11, and second-draw PPP loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. An update to the PPP guidelines outlining changes to the program to improve its effectiveness and accessibility was released on January 6 in accordance with the Law on Economic Aid to Small Businesses, Nonprofits and Hard-Fitting Sites. affected.
This P3 cycle continues to prioritize millions of Americans employed by small businesses by authorizing up to $ 284 billion for job retention and certain other spending through March 31, 2021, and allowing some existing PPP borrowers to apply for a second PPP loan.
“The historically successful Paycheck Protection Program has served as an economic lifeline for millions of small businesses and their employees when they needed it most,” said Administrator Jovita Carranza . “Today’s advice builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to secure their path to recovery.”
“The Paycheque Protection Program has successfully issued 5.2 million loans worth $ 525 billion to small businesses in the United States, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “These updated guidelines improve targeted PPP relief for small businesses most affected by COVID-19. We are committed to quickly implementing this cycle of PPP to continue to support American small businesses and their workers. “
The main PPP updates include:
- PPP borrowers can set the period covered by their PPP loan to be between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operating expenses, property damage costs, supplier costs, and worker protection expenses;
- Program eligibility is broadened to include 501 (c) (6), housing co-ops, destination marketing organizations, among other types of organizations;
- The PPP offers greater flexibility for seasonal employees;
- Some existing PPP borrowers may request to change the amount of their first-draw PPP loan; and
- Some existing PPP borrowers are now eligible to apply for a second draw PPP loan.
- A borrower is generally eligible for a second-draw PPP loan if they:
- Previously received a first draw PPP loan and will use or have used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate a reduction of at least 25% in gross revenue between comparable quarters in 2019 and 2020.
New published guidelines include:
- SBA Carranza Administrator’s PPP Guidelines on Access to Capital for Minority Owned, Underserved, Veteran and Women Businesses;
- Provisional Final Rule on Paycheck Protection Program, as amended by the Economic Assistance Act; and
- Provisional final rule on second-draw PPP loans.
For more information on SBA Small Business Support, visit sba.gov/ppp or treasury.gov/cares.