To Pamela Cruz. Peninsula 360 Press [P360P]
The U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, announced that the Payment Check Protection Program (PPP) will reopen starting this Monday, January 11, for new borrowers and certain existing PPP borrowers.
To promote access to capital, initially only community financial institutions will be able to provide first-draft PPP loans on Monday, January 11 and second-draft PPP loans on Wednesday, January 13, while the PPP will be open to all participating lenders shortly thereafter.
It is worth mentioning that on January 6 an updated PPP guide was published describing the changes to the Program to improve its effectiveness and accessibility, in accordance with the Financial Assistance Act for Small Businesses, Non-Profit Organizations and Headquarters.
This round of PPPs gives priority to millions of Americans employed by small businesses by authorizing up to $284 billion for job retention and other expenses through March 31, 2021, by allowing PPP borrowers to apply for a second round PPP loan.
The Paycheck Protection Program served "as an economic lifeline for millions of small businesses and their employees when they needed it most," said Administrator Jovita Carranza, who added that the program adapts to the changing needs of small business owners.
Administrator Jovita Carranza
For his part, the Secretary of the Treasury, Steven T. Mnuchin, said that
"The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to small businesses in the United States, supporting more than 51 million jobs.
Steven T. Mnuchin, Secretary of the Treasury
"This updated guide improves the specific PPP relief for the small businesses most affected by COVID-19. We are committed to implementing this round of PPPs quickly in order to continue to support U.S. small businesses and their workers," he added.
Some of the key updates to PPPs include that PPP borrowers can set their loan coverage period to 8-24 weeks to better meet their business needs.
Also, that PPP loans can cover additional expenses, including operating expenses, property damage costs, supplier costs and worker protection expenses, as well as greater flexibility for seasonal employees.
For more information on SBA's assistance to small businesses, those interested can visit sba.gov/ppp or treasury.gov/cares.
