Applications open for latest round of PPP funding

The Paycheck Protection Program has reopened, effective Monday.

The U.S. Small Business Administration said the program will be open to new borrowers and some existing borrowers. First-draw borrowers can apply beginning today. Second-draw borrowers can apply beginning Wednesday.

The program, which received a new tranche of funding through the latest COVID-19 relief bill from Congress, authorizes up to $284 billion nationwide toward job retention and certain other business expenses through March 31.

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Empowering communities

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Key provisions include:

• PPP borrowers can set their loan’s covered period to be any length between eight and 24 weeks.
• 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 and 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.
• Certain existing PPP borrowers are now eligible to apply for a second loan.

A borrower is generally eligible for a second loan if the borrower:

• Previously received a PPP loan and will or has used the full amount only for authorized uses.
• Has no more than 300 employees.
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

PPP loans continue to be issued at a 1% interest rate and are forgivable if loan conditions are met. Maturity on new loans will be five years instead of the two years for the initial loans. 

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