The United States Small Business Administration (SBA) today (January 11) reopened the federal Paycheck Protection Program (PPP) loan portal featuring website updates with new details including the application form and the Interim Final Rule for the program changes recently signed into law with the $9 billion Emergency Coronavirus Relief Act.
The PPP program is designed to help small businesses maintain and not-for-profit organizations payroll in light of the COVID-19 pandemic. Eligible businesses who enroll in the program will receive a forgivable loan to use for payroll purposes (up to 60 percent of the loan), in addition to helping pay for utilities, rent, mortgage interest payments, and more.
New loans are capped at $2 million, compared to $10 million before. Applicants must have no more than 300 employees, instead of up to 500, and must demonstrate at least a 25 percent drop in revenues from the fourth quarter of 2019 to the same period in 2020.
The bill expands the type of covered expenses to include things like cloud computing or remote-work software; and equipment for government-mandated sanitation and social-distancing, like sneeze guards or air filtration systems.
Applicants who meet the qualifications above can apply for what are termed “second draw” PPP loans, even if they previously received financial assistance through the federal Coronavirus Aid Relief and Economic Security (CARES) Act.
Key dates and program details along with links are included as follows:
• The SBA resumed acceptance of PPP applications on January 11, 2021. Click HERE to access application. The portal will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and Microloan Intermediaries.
• Lender Information: PPP loans will be 100 percent federally guaranteed, but handled by SBA-certified lenders. Lending institutions that are not currently SBA-certified, but want to participate should email DelegatedAuthority@sba.gov.
• Application Information: The deadline for the latest round of applications for a PPP Loan is March 31, 2021. Those interested in applying for the current round of PPP funding are encouraged to speak with their financial institution ASAP to begin the process.