PPP is relaunching next week!
This morning Friday January 8, the SBA announced that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. Starting on Monday, January 11, community development financial institutions (CDFIs) will be able to make PPP loans for new borrowers. This is an effort to make PPP more accessible to those who were left behind by the first round of loans.
Key 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 will be eligible to apply for a Second Draw PPP Loan beginning January 13.