Paycheck Protection Program re-opens

The U.S. Small Business Administration, in consultation with the Treasury Department, re-opened the Paycheck Protection Program Monday, Jan. 11, for new borrowers and certain existing PPP borrowers.

To promote access to capital in underserved communities, only community financial institutions (community development financial institutions, minority depository institutions, certified development companies and microloan intermediaries) were initially able to make First Draw PPP Loans on Jan. 11 and Second Draw PPP Loans on Jan. 13.  The PPP will open to all participating lenders shortly thereafter.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

“The PPP was an incredible shot in the arm for small businesses last year, and this second wave of financial support will especially be a boost to businesses in rural and underserved communities,” said Dan Nordberg, SBA’s national eirector of rural affairs and Region VIII administrator.

“With a targeted opening, SBA is prioritizing and extending relief to impacted business owners who need it the most. If you own or operate a small business, I strongly encourage you to look into this opportunity for assistance. As always, our SBA team is eager to answer questions, offer help through the process, and connect business owners and entrepreneurs with tools for long-term health and success,” he said.

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