The U.S. Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) will reopen the week of Jan. 11 for new borrowers and certain existing borrowers. This applies to both first and second draw loans. For companies interested in applying for a new PPP loan, we strongly urge you to promptly consult with your financial institution and tax advisor to ensure you have the latest information as elements are still evolving, and are prepared to act as the loan funds become available.
Key updates to this round of funding include:
Borrowers can set their loan covered period to be any length between eight and 24 weeks to best meet their needs.
Loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
Eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.
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.