PPP Loan Recipients Information
Paycheck Protection Program (PPP) re-opened the week of January 11th for new borrowers and certain existing PPP borrowers.
• Program opened on January 11th to certain institutions (CDIF’s and MDI’s), and shortly thereafter for others.
• We are accepting completed applications from you, the borrower, and are prepared to submit to SBA for approval.
• Program ends March 31st.
Key PPP updates include:
• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
• The PPP provides 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.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. There is some flexibility to expand this to year-over-year – see SBA Guidance for more details.
The new guidance released includes:
• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and
• Interim Final Rule on Second Draw PPP Loans
For more information on SBA’s assistance to small businesses, visit the SBA website or the Treasury website.
• Applications for forgiveness are being accepted. Contact your lender for details and the link to begin the process.