Paycheck Protection Program Reopens

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Paycheck Protection Program Reopens

Beginning  January 11, 2021, small businesses who have not yet received emergency loans through the Paycheck Protection Program (PPP), also known as First Draw PPP Borrowers, can apply for loans through the program. Businesses who previously received PPP funding, known as Second Draw PPP Borrowers, who qualify can apply for additional funds beginning Wednesday, January 13, 2021. Initially, only community financial institutions will be able to make First Draw and Second Draw PPP Loans. The PPP will open to all participating lenders shortly thereafter. The following important updates have been made to the Paycheck Protection Program since it originally launched in 2020:
  • Borrowers can set their covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • Loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • 501(c)(6)s, housing cooperatives, direct marketing organizations, and other types of organizations who previously were not eligible may now apply;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount;
  • Employers may now deduct PPP related business expenses.
Borrowers who already received PPP loans may apply for a second draw on or after Wednesday, January 13, 2021 if they:
  • Previously received a PPP Loan and will or has used the full amount only for authorized uses;
  • Have no more than 300 employees; and
  • Demonstrates at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
More information about the Paycheck Protection Program, including frequently asked questions and application forms, can be found on the Small Business Administration website. Information provided by Congressman Van Taylor

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