Small businesses have until March 31
The Paycheck Protection Program (PPP) has re-opened for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to provide loans. The PPP will open to all participating lenders shortly thereafter.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021.
Key PPP updates include:
- PPP borrowers can set their PPP loan-coverage period to be any length between 8 and 24 weeks
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures
- 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
A borrower is generally eligible for a second draw if the borrower:
- Previously received a first draw PPP loan and will use 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