Paycheck Protection Program restarting Monday, January 11
The US Small Business Administration is restarting the Paycheck Protection Program, which will help millions of Americans employed by small businesses affected by COVID-19.
The program has been updated to be more effective and accessible by the Economic Aid to Hard-Hit Small Businesses, Non-Profits and Venues Act. It will authorize up to $284 billion for job retention and other expenses through March 31, 2021. It will also allow existing PPP borrowers to get another loan.
Key PPP updates include:
- PPP borrowers can set their PPP loan’s 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, 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; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin in a press release. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”