In an announcement from the U.S. Small Business Administration (SBA) on Jan. 8, the federal agency, in consultation with The U.S. Department of the Treasury, reopens the Paycheck Protection Program (PPP) the week of Jan. 11 for new borrowers and some existing PPP borrowers.
Initially, in an effort to promote access to capital, only community financial institutions will be able to make First Draw PPP Loans on Monday, Jan. 11, and Second Draw PPP Loans on Wednesday, Jan. 13. The PPP will open to all participating lenders shortly after that.
This round of the program authorizes up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks
- PPP loans cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
- The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations
- Greater flexibility for seasonal employees
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount
- Certain existing PPP borrowers are eligible to apply for a Second Draw PPP Loan