On January 8, the U.S. Small Business Administration, in consultation with the U.S. Treasury Department, announced that the federal government’s Paycheck Protection Program (PPP) has re-opened for new borrowers and certain existing PPP borrowers.
Eligible new barrowers can apply for a First Draw PPP Loan, while eligible barrowers who previously received a PPP loan can apply for a Second Draw PPP Loan. The application deadline for either loan is March 31, 2021.
The new PPP Loan funding totaling $284 billion is made possible by the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, which is included in the Consolidated Appropriations Act passed by Congress and signed by the president on December 27, 2020.
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
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan
New Barrowers for First Draw PPP Loan Details
Existing Barrowers for Second Draw PPP Loan Details
Find a lender with the SBA’s Lender Match Tool
The following SBA partner organizations can advise and support you with your application:
A New America Women’s Business Center
Minority Business Development Agency
Silicon Valley Small Business Development Center
Visit the Financial Assistance and Resources for Businesses web page for additional resources.