PPP Re-Opening TODAY - 1/11/2021

The SBA announced late last week that the Paycheck Protection Program will re-open today, January 11, 2021. Here is what you need to know:

• 501(c)3 and 501(c)6 organizations are eligible 
  
• First draw PPP loans have opened today (Monday, January 11th)
  
• Second draw PPP loans will open Wednesday, January 13th.
  

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Key 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)6s, housing cooperatives, destination marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain and existing PPP borrowers can request to modify their First Draw PPP Loan amount; and 
• Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

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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; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The new guidance released includes:

• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;
• Interim Final Rule on on Paycheck Protection Program as Amended by Economic Aid Act; and 
• Interim Final Rule on Second Draw PPP Loans.

For more information and guidance, click here.
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Content Credit: U.S. Small Business Administration