Jan. 8, 2021—Today, the U.S. Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) will reopen for new borrowers and certain existing PPP borrowers, according to a press release.
Some existing PPP borrowers will be able to apply for a second loan.
Community financial institutions will be able to make first draw PPP loans starting Monday, Jan. 11, and second draw PPP loans starting Wednesday, Jan. 13, with PPP open to all participating lenders shortly after.
The new round of loans will continue to prioritize aid for small businesses with up to $284 billion authorized to support job retention and specific expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
In coordination with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, updated PPP guidance and program changes were released earlier this week. Key updates include allowance for PPP borrowers to set their loan’s covered period to be any length between 8 and 24 weeks, greater flexibility for seasonal employees, modifications for some first draw PPP loan amounts, and more.