Small Business Administration (SBA) offered a second round of Paycheck Protection Program (PPP) funding beginning in January 2021. The funding for this loan program has been depleted and we will no longer be accepting or processing applications at this time.
Paycheck Protection Program (PPP): Updated May 5, 2021
The second round of the PPP was put in place in January to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through May 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan. The funds for this loan program have run out early and are no longer available as of May 4, 2021.
Under this program:
- PPP borrowers can set their PPP loans 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, direct 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; and
- 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.
Click here to read SBA and Treasury Announce PPP Re-Opening; Issue New Guidance Press Release.
SBA Re-Opening Paycheck Protection Program to Small Lenders on Friday, January 15 and All Lenders on Tuesday, January 19 Press Release.