Paycheck Protection Program set to fully reopen Tuesday

VIDEO: Paycheck Protection Program set to fully reopen Tuesday

The U.S. Small Business Administration said the Paycheck Protection Program (PPP) loan portal will fully reopen on Tuesday, Jan. 19, to all participating lenders.

SBA said the PPP loan portal partially reopened Monday morning, with exclusive access first given to community lenders to help serve the smallest eligible businesses owned by minorities, women and veterans in underserved areas.

SBA said the forgivable loan program, which was recently injected with $284 billion in funding, would reopen to eligible lenders with $1 billion or less in assets for first-time and second-time applications starting Friday, Jan. 15.

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PPP guidance and resources are available here. Applications can be submitted through March 31.

Thousands of “minority-owned small businesses were at the end of the line in the government’s coronavirus relief program,” and many struggled to find banks that would accept their applications, according to PPP data analyzed by The Associated Press last year.

Public companies are barred from borrowing from the latest round of PPP loans, as the program had previously been criticized for allowing some larger companies access.

In a news release, SBA said it plans to dedicate specific times to process and help the smallest PPP lenders with applications.

SBA highlighted key updates to the latest round of PPP loans:

  • PPP borrowers can set their PPP loans’ covered period to be any length between 8 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, and other types of organizations.
  • The PPP provides greater flexibility for seasonal employees.

SBA said a borrower is generally eligible for a second draw PPP loan if it:

  • Previously received a first-draw PPP Loan, and will or has used the full amount only for authorized uses.
  • Has a maximum of 300 employees.
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
VIDEO: Help is on the way for struggling small businesses