The U.S. Small Business Administration announced on Friday that the Paycheck Protection Program will re-open this week for new borrowers and certain existing PPP borrowers.
Initially, only community financial institutions will be able to make First Draw PPP loans on Monday and Second Draw PPP Loans on Wednesday, January 13. The program will open to all participating lenders shortly thereafter. Updated guidance outlining changes to enhance the program’s effectiveness and accessibility was released January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
The PPP’s priority for this round is still focused on people employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31 and allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
