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.

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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