By Pamela Cruz. Peninsula 360 Press [P360P].
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced that the Paycheck Protection Program (PPP) will reopen beginning 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 make First Draw PPP Loans on Monday, January 11 and Second Draw PPP Loans on Wednesday, January 13, with the PPP opening to all participating lenders shortly thereafter.
Of note, updated PPP guidance was released on January 6 that outlines changes to the Program to improve its effectiveness and accessibility in accordance with the Small Business, Nonprofit, and Headquarters Economic Assistance Act.
This round of PPPs prioritizes millions of Americans employed by small businesses by authorizing up to $284 billion for job retention and other spending through March 31, 2021, by allowing PPP borrowers to apply for a Second Draw 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 made 5.2 million loans worth $525 billion to America's small businesses, supporting more than 51 million jobs."
Steven T. Mnuchin, Secretary of the Treasury
"This updated guidance enhances targeted PPP relief for small businesses most affected by COVID-19. We are committed to implementing this round of PPP quickly to continue to support American small businesses and their workers," he added.
Some of the key updates to PPP include that PPP borrowers can set their loan coverage period to be between 8 and 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 about the SBA's assistance to small businesses, interested parties can visit sba.gov/ppp or treasury.gov/cares.
