Paycheck Protection Program Opens Week of January 11
Today, the SBA announced details on Round 2 of the Paycheck Protection Program.
To promote access to capital, initially only community financial institutions will be able to make 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."
Key updates include:
- Borrowers can set their loan covered period to be any length between 8 & 24 weeks to best meet their needs
- Loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, & 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 now eligible to apply for a Second Draw PPP Loan
- A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- 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; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Please contact your lender with questions. If you do not have a lender, you can search for SBA lenders in the resource link provided below.
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