The Small Business Administration (SBA), in conjunction with the Treasury Department, recently issued the first round of updated guidance on the Paycheck Protection Program (PPP) in light of the passage of the new COVID-19 relief law.
The SBA issued guidance on “first-draw” PPP loans for first-time borrowers and “second-draw” PPP loans for repeat borrowers. Major changes from the old PPP rules include more flexibility for borrowers in choosing a covered period, expanded list of eligible loan expenses, and the ability to take out a second loan of up to $2 million under certain circumstances. Below you will find a summary of both guidance documents.
The Small Business Administration and Treasury Department also announced that the Paycheck Protection Program (PPP) will reopen the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make “First Draw” PPP Loans on Monday, January 11 and “Second Draw” PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. New applications for the program have yet to be released.
BSCAI will continue to keep members updated on any new information and guidance as it becomes available. For questions, please contact Kevin McKenney at email@example.com.
First-Draw PPP Loans
Second Draw PPP Loans