Paycheck Protection Program Open for First Time Borrowers!

St. Louis District Office  - January 11, 2021

u s small business administration

Paycheck Protection Program Re-opens to First Time Borrowers Today!

PPP

The U.S. Small Business Administration (SBA), in consultation with the Department of Treasury, re-opened the Paycheck Protection Program (PPP) loan portal earlier this morning for new borrowers and certain existing PPP borrowers. To promote access to capital, initially, only First Draw PPP loan applications from participating Community Development Financial Institutions (CDFIs), will be accepted. Second Draw PPP loan applications will be accepted starting on Wednesday, January 13. PPP will open to all participating lenders shortly thereafter. 

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

Read Press Release Here

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.

The new guidance released includes:

Important PPP Forms Revised 1/8/2021:

 

 First Draw Forms

Second Draw Forms

 

Upcoming PPP Webinars 

Wednesday, January 13

Paycheck Protection Protection & Other Small Business Support| 9:00 a.m.| Hosted by SBA St. Louis District Office| Register

Wednesday, January 20

Paycheck Protection Protection & Other Small Business Support| 9:00 a.m.| Hosted by SBA St. Louis District Office| Register

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares. To stay up to date on business events in eastern Missouri sign up for the SBA St. Louis subscriber service here.

 

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