The U.S. Small Business Administration, along with the U.S. Treasury Department, has re-opened the Paycheck Protection Program (PPP) for new borrowers, as well as certain existing PPP borrowers.

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At first, only community financial institutions (such as: Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and Microloan Intermediaries) will be able to make First Draw PPP Loans on Monday, Jan. 11, followed by Second Draw PPP Loans on Wednesday, Jan. 13. Shortly after that, the PPP will be open to all participating lenders.

The goal of PPP is to offer loans to businesses (especially small businesses) in order to help them keep their workforce employed throughout the current pandemic. The first round of PPP loans was offered in early 2020. This round of the PPP is authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021.

It also allows for 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 Director 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.”

Per a press release from the SBA, 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.

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

There are more guidelines and guidance, which can be found at:

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp.

(Dan Nordberg serves as both the SBA’s Director of Rural Affairs and Region 8 Administrator, based in Denver. As regional administrator he oversees the agency’s programs and services in Colorado, Montana, Utah,  North Dakota, South Dakota, and Wyoming)