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SBA resumes Paycheck Protection Program (PPP) for new borrowers

The U.S. Small Business Administration (SBA) has resumed the Paycheck Protection Program (PPP) for new borrowers and certain existing PPP borrowers.

Initially, the SBA will only be accepting applications for “first-draw” small businesses that have yet to receive a PPP loan, and it will only be accepting those applications from lenders it has signaled as “community financial institutions.” The SBA has defined those as Community Development Financial Institutions, minority deposit institutions, certified development companies and microloan intermediaries, which means those lenders will be able to process applications and submit them to the SBA first.

On Wednesday, January 13, small businesses applying for a second PPP loan will be able to do so, but once again only with community financial institutions.

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, 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 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.

For more information on SBA’s assistance to small businesses, visit or The SBA’s website has loan details and forgiveness information for businesses that have already received a loan.

Have Questions or Need Help?
Contact the Mason Small Business Development Center at .(JavaScript must be enabled to view this email address) or 415-937-7232
SBA Customer Service: 1-800-659-2955 or .(JavaScript must be enabled to view this email address)

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