January 11, 2021
This week the SBA is accepting applications for the newly funded, additional round of PPP 1st draw and 2nd draw loans for new and certain existing PPP loan borrowers. The additional funding, targeted to provide relief and a less complicated forgiveness process, is part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act passed in December 2020 under the gigantic Consolidated Appropriations Act (CAA).
As of today, the SBA is ready to accept PPP 1st draw loan applications for those who did not receive an initial loan, PPP loan borrowers who previously repaid some or all of their loan amount or initially received less than they were eligible for. Click here for 1st draw PPP loan applications.
On Wednesday, January 13, 2021, the SBA will begin accepting PPP 2nd draw loan applications for those who previously received a PPP loan and will or have used the full amount for authorized uses only; have had a 25% or more drop in comparable quarterly revenue; and have 300 or fewer employees. Click here for 2nd draw PPP loan applications.
However, while the SBA oversees the Paycheck Protection Program (PPP) and is ready this week to accept applications, applicants need to check with participating lenders for their institution’s specific loan acceptance dates. The SBA and Treasury have also indicated that they will take several steps to increase access to PPP funds for minority, underserved, veteran and women-owned businesses, including acceptance of loan applications from community financial institutions (CFIs) serving those businesses prior to accepting applications from other lenders.
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. The newly funded 1st and 2nd draws authorize up to $284 billion and provide other updated qualifiers such as:
- 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; and
- The PPP provides greater flexibility for seasonal employees.
Both 1st and 2nd draw PPP loan applications are being accepted through March 31, 2021.
For a printer-friendly version, CLICK HERE.
To read previous JPS articles about this round of PPP loans and other provisions of the Consolidated Appropriations Act (CAA), CLICK HERE.
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