Paycheck Protection Program Re-Opens

Brown EdwardsCoronavirus Latest News Small Business ReliefPaycheck Protection Program Re-Opens

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, has re-opened the Paycheck Protection Program (PPP) on Monday, January 11, 2021 for new borrowers who have not received a PPP loan in the past. The program is initially opening to participating Community Financial Institutions, with the first two days reserved for new borrowers. On Wednesday, January 13, 2021, Second Draw PPP Loans will open for participating Community Financial Institutions. Shortly thereafter, the SBA will announce the full availability for all lenders who previously participated in the PPP to resume accepting new application. Applications will be accepted through March 31, 2021 or until the $284 billion appropriation is exhausted.

The SBA provided overview of the First Draw and Second Draw PPP loans, which include details on eligibility and more.

While you await the opening of the lending portal, you should begin to familiarize yourself with the applications, assess your eligibility for a first draw or second draw loan and gather information needed to complete the application, which can be found at Form 2483 – First Draw Borrower Application or Form 2483-SD – Second Draw Borrower Application.

We will send another alert when the SBA releases a timeline for the opening of the lending portal to all borrowers. Please contact your Brown Edwards’ professionals if you have any questions about the Paycheck Protection Program.