Latest Round of PPP Reopens for New Applications
The U.S. Paycheck Protection Program (PPP) reopens this week for new applications.
To promote business access to capital, the Small Business Administration (SBA) is allowing only community financial institutions to make First Draw PPP Loans starting today, January 11, and Second Draw PPP Loans starting on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.
The latest round of PPP has up to $284 billion for loans to businesses for job retention and certain other expenses through March 31, 2021, and it allows certain existing PPP borrowers 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.