The second round of the Paycheck Protection Program (PPP) rolls out today! Federal officials say they’ve worked out the issues that plagued the first round from earlier this year. Speaking of which, that first-round of the PPP helped over 55,000 small businesses stay afloat. Undoubtedly this next round will do the same for many others. The Treasury Department said they don’t anticipate running out of money as they did last time, it’s best to apply soon.
When Can Businesses Apply?
Businesses that already received a PPP loan will be eligible for another loan if they have fewer than 300 employees and can show at least a 25% loss for at least one quarter of last year. Also, loan funds can be used to cover more expenses — not just payroll, but also to purchase supplies, including personal protective equipment.
New borrowers (and certain existing PPP borrowers) can apply for the PPP loan starting Monday, January 11. To promote access to capital, initially, only community financial institutions will be able to make First Draw PPP Loans on January 11.
Second Draw PPP Loans will be allowed on Wednesday, January 13. The PPP will then open to all participating lenders shortly thereafter. Applicants should be aware of updated PPP guidance outlining program changes released on January 6. These changes, under the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, are designed to enhance its effectiveness and accessibility. This round of the PPP, just as the first, will prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and other expenses through March 31, 2021.