Today, the Small Business Administration and the Department of the Treasury officially reopened the Paycheck Protection Program. Only community financial institutions are able to make loan applications this week. The PPP opens to all other participating lenders soon.
Today, the Small Business Administration (SBA) and U.S. Department of the Treasury officially reopened the Paycheck Protection Program (PPP). At the end of December, President Trump signed into law COVID-19 relief legislation that included an additional $284 billion for the program.
To promote access to capital for minority-owned businesses and those in distressed areas, only community financial institutions will be able to make first draw PPP Loans starting Monday, Jan. 11, and second draw PPP Loans starting on Wednesday, Jan. 13. The PPP will open to all participating lenders shortly thereafter.
Ahead of the PPP relaunch, the SBA also released application forms for first draw PPP loans and second draw PPP loans. A borrower is generally eligible for a second draw PPP loan if the borrower meets the following criteria:
- 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.
As more information becomes available regarding the revived PPP process, the Big “I" will continue to provide updates to members.
Wyatt Stewart is Big “I" assistant vice president of federal government affairs.