The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, re-opened the Paycheck Protection Program (PPP) loan portal to all participating lenders on January 19, 2021 to submit First and Second Draw loan applications to SBA.
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, direct 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
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
More information will be available on the SBA website
The SBA Orange County/Inland Empire District Office will be conducting live webinars, “The Economic Aid Act & PPP Relaunch,” all week. Register for a date and time below.