As a result of legislation recently passed by Congress, the Small Business Administration will re-open the Paycheck Protection Program today, January 11. Paycheck Protection Program (PPP) Loans are now available to new and certain existing borrowers.
About Paycheck Protection Program Loans
The Paycheck Protection Program provides small businesses with funds to pay up to 24 weeks of payroll costs, including benefits. These loans will be forgiven if the following requirements are met:
- Employees are kept on payroll and compensation levels are maintained;
- The loan is used to cover payroll and other eligible expenses, including mortgage interest, rent, utilities, operations expenses, property damage costs, supplier costs and worker protection expenditures;
- At least 60 percent of the proceeds are spent on payroll costs.
Click here for more information on the Paycheck Protection Program and how to apply.
First Time Borrower Eligibility:
All businesses, including 501c3 non-profits, veterans organizations, tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries, are eligible.
Second Time Borrower Eligibility:
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.
To promote access to capital, community financial institutions will be able to make First Draw PPP Loans available on Monday, January 11. Second Draw PPP Loans will be made available on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.
As always, our offices are open and ready to help. If you need assistance, please contact us at 202-225-3026 or visit mast.house.gov/coronavirus for more information.