The U.S. Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) will reopen the week of January 11 for new borrowers and certain existing borrowers. This applies to both first and second draw loans. Companies interested in applying for a new PPP loan are asked to consult with your financial institution and tax advisor to ensure you have the latest information as elements are still evolving. That way, when the funds become available you are prepared and ready to apply.
Updates to funding include:
- Borrowers will be able to set their loan covered period to be any length between 8 and 24 weeks.
- Loans will cover additional expenses to include operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
- Eligibility has been expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.
- 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 Draw PPP Loan.
View more details in Press Release dated January 8. As more details become available, we will post them promptly and keep you up-to-date.