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The U.S. Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders “shortly thereafter,” according to the SBA. The second loans will only be available to businesses that can show a 25% quarterly revenue loss last year compared to 2019.
New guidance for the program was also released. Key updates include:
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
The new guidance includes: