Federal agency reopens PPP loans on Monday
$284 billion second round of program starts with community financial institutions and expands to other lenders later, the Small Business Administration says
Ron Ruggless, Nation's Restaurant News
Jan 08, 2021
The U.S. Small Business Administration and the Treasury Department will reopen the Paycheck Protection Program Jan. 11 to new borrowers and certain existing PPP borrowers, the agency said Friday.
“To promote access to capital for underserved communities, only community financial institutions will be able to make first draw PPP loans on Monday, Jan. 11, and second draw PPP loans on Wednesday, Jan. 13,” said Sean Kennedy, the National Restaurant Association’s executive vice president of public affairs.
“The PPP will open to all participating lenders shortly thereafter,” added Kennedy. Available funds in the second round of PPP total $284 billion.
The association has created a manual to help restaurant operators navigate the second round of the program, which was funded as part of the $900 billion pandemic relief measure signed Dec. 27 that included one-time $600 stimulus checks for Americans making up to $75,000 a year.
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said Jovita Carranza, administrator of the Small Business Administration.
“Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery, said Carranza, who separately outlined PPP guidance for minority-, veteran- and women-owned businesses.
This PPP round authorizes up to $284 billion toward job retention and certain other expenses through March 31. Some existing PPP borrowed can apply for a second draw of PPP loans as well.
The SBA said key updates in the program include: