SBA on Monday to reopen second PPP round
Photo | Grant Welker
Long-vacant storefronts at 554 Main St. in downtown Worcester.
The U.S. Small Business Administration announced on Friday the Paycheck Protection Program would re-open on Jan. 11 to new borrowers and certain previous recipients who want to apply for a second coronavirus relief loan.
Up to $284 billion has been authorized for the second round of PPP, and will cover certain business expenses through March 31. At the same time, updated PPP guidance was released on Wednesday.
Financial institutions will be able to make first draw PPP loans beginning Monday; second draw PPP loans will open Wednesday.
Updates to PPP guidance allow borrowers to set their loan’s covered period any length between eight and 24 weeks and allows for covering additional expenses, like operations expenditures, property damage costs, supplier costs and worker protection expenditures. The changes allow for flexibility for seasonal employers.
Existing PPP borrowers will generally be eligible to apply for a second loan if they’ve used up their previous loan money, have 300 or fewer employees, and can demonstrate at least a 25% reduction in gross receipts between comparable quarters.
The PPP was established as part of the March 2020 Coronavirus Aid, Relief, and Economic Security Act. So far, according to the SBA, the PPP has provided $525 billion to small businesses and supported 51 million jobs.
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