The Paycheck Protection Program reopened Monday for new borrowers and certain existing PPP borrowers, the U.S. Small Business Administration and the U.S. Treasury Department announced.
This round — like the first — will be in the form of forgivable loans to small businesses and some nonprofits. The PPP authorizes up to $284 billion toward job retention and certain other expenses through March 31, 2021, and allows certain existing PPP borrowers to apply for a Second Draw PPP Loan.
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” Administrator Jovita Carranza said in a statement Monday. “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.”
Loan applications started Monday with small community financial institutions. Larger lenders will follow in the coming days, officials said.
Last year, the PPP provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs.
In the Stanwood-Camano area last year, 455 businesses and nonprofits received about $50 million in federal loans made available through the CARES Act to help cover expenses and pay employees. The loans helped retain at least 1,600 jobs in Stanwood and on Camano Island, according to analysis of the data.
In this new round:
- PPP borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks to best meet their business needs.
- 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, destination 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 Draw PPP Loan. To qualify, applicants need to demonstrate that they’ve suffered at least a 25% year-over-year drop in revenues during any quarter of 2020.