The Paycheck Protection Program will reopen Jan. 11, offering forgivable loans to small businesses and allowing some cash-strapped businesses to borrow a second time, according to the US Small Business Administration.
Congress has authorized up to $ 284 billion for the small business loan program under the sweeping Covid relief law that came into effect in late 2020.
This measure also included additional help for small businesses in the form of tax deductibility for expenses covered by the PPP, as well as tax credits for businesses that kept their employees on the payroll and a simplified discount. for loans less than $ 150,000.
This time, the SBA and the Treasury Department have phased the reopening.
This means that initially only community financial institutions – this includes banks and credit unions that lend in low-income communities – will be able to initiate PPP loan applications on January 11.
They will offer a second PPP loan to qualifying businesses starting Jan. 13, the SBA said.
Companies that receive a second injection of loan products must meet certain conditions, including having no more than 300 employees and experiencing a reduction of at least 25% in gross revenue in a quarter between 2019 and 2020.
The program will reopen to all participating lenders shortly thereafter, according to the agency.
“Today’s advice builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to secure their path to recovery,” said said Jovita Carranza, administrator of the SBA.