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Paycheck Protection Program reopens this week

Small businesses will soon be able to apply for loans through Paycheck Protection Program
Posted at 11:55 AM, Jan 11, 2021
and last updated 2021-01-11 11:55:17-05

WASHINGTON — The U.S. Small Business Administration announced Monday that the Paycheck Protection Program (PPP) will reopen this week.

It reopens Monday for new borrowers and Wednesday for second draw borrowers, a news release said.

Companies interested in applying for a new PPP loan are urged to quickly consult with their financial institution or tax adviser.

Key updates to this round of funding include:

  • Borrowers can set their loan-covered period to be any length between eight and 24 weeks to best meet their needs
  • Loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures
  • Eligibility is expanded to include 501(c)(6)s, housing cooperatives and direct marketing organizations, among other types of organizations
  • 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

More information can be found here.