SBA New Pandemic Relief Package Resources

Here are the following resources for the New Pandemic Relief Package

Updated PPP Application FormsCommunity finance institutions can start issuing PPP loans to first-time recipients on Monday, Jan. 11. Those same lenders will be able to offer new loans to companies that previously received PPP loans starting two days later on Wednesday, Jan. 13. Protection Program (PPP) loan portal will be open to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9 am ET. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to 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, direct 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. (This calculation does not include loan forgiveness)

(SOME INFORMATION TAKEN FROM WASHINGTON POST)
IMPORTANT DATES - Updated 11/12
Jan 11 - PPP opens for First-time recipients
Who Can Apply?
  • Businesses that have yet to receive a PPP loan before the program closed in August 2020
  • Businesses with 500 or fewer employees
  • Businesses with more than 500 employees that meet the SBA’s alternative size
  • Self-employed individuals
  • Sole Proprietorships
  • Independent Contractors
Use of Funds Include:
Payroll & benefits
Mortgage interest
Rent & utilities
Worker Protection costs related to COVID-19
Application Period
  • January 11 – March 31, 2021

Jan 13, 15 & 19 - PPP opens for 2nd Draw
Who Can Apply?
  • Businesses that previously received a PPP loan
  • Business with no more than 300 employees
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Use of Funds Include:
Payroll & benefits
Mortgage interest
Rent & utilities
Worker Protection costs related to COVID-19
Application Period
  • January 13 – March 31, 2021

Related Posts