The Paycheck Protection Program will reopen to new borrowers and certain existing PPP borrowers on Monday, January 11. There will be a second draw of loans that will take place on Wednesday, January 13. After these two dates, PPP loans will shortly open to all other participating lenders.
This round of the PPP loans authorizes up to $284 billion toward job retention and certain other expenses through Wednesday, March 31, 2021.
Below are key PPP updates:
- 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
- Eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations and other types of organizations
- Provides 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
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Additionally, the US Chamber of Commerce released an updated Guide to Small Business COVID-19 Emergency Loans.
The guide covers the following topics:
1. How do new changes impact my existing PPP loan?
2. I exhausted my initial PPP loan, how does this help me?
3. What if I never received a PPP loan?
4. Which other programs that may help my small business have been changed or updated?