The U.S. Small Business Administration has reopened the Paycheck Protection Program for business loans.
According to an SBA announcement, the program is reopening this week for new borrowers and some existing borrowers.
Initially, only community financial institutions will be able to borrow money on Monday and Wednesday, and after that, all participating lenders will be allowed.
According to the announcement, up to $284 billion will go toward job retention and other expenses through March 31. Some existing PPP borrowers will be able to apply for a second draw PPP loan.
Key PPP updates include:
• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will 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, destination marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers can request to modify their first draw PPP Loan amount; and
• 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.
More information is online at sba.gov/ppp.