Second Round of PPP Opens Monday with CDFIs
YOUNGSTOWN, Ohio – The second phase of the Paycheck Protection Program will open Jan. 11 with first-draw borrowers from community development financial institutions before expanding to others throughout the week.
In a statement issued Friday morning, the Small Business Administration said the first applications at CDFIs would be accepted Monday, followed by second-draw borrowers at such institutions on Jan. 13.
Other financial institutions will follow “shortly thereafter,” though no specific date was given. Applications for loans through the $284 billion program will be accepted through March 31.
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said SBA administrator Jovita Carranza in a statement. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”
Among the updates to the program are a reduction in the maximum loan amount to $2 million, the addition of eligible expenses funds can be used on, the programs expansion to include 501(c)(6) organizations and the covered period, which can be any length between eight and 24 weeks, depending on borrower needs.
Businesses that received a PPP loan in the first round of the program can apply again as long as they used the full amount of the first loan, employ fewer than 300 people and can show at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Copyright 2024 The Business Journal, Youngstown, Ohio.