Starting Monday, small businesses looking for financial support for the coronavirus epidemic season will again be able to commission a paycheck protection program. The loan program is re-opening on 11 January, initially with borrowers for the first time, with borrowers for the second time on 13 January.
Congress authorized the program to resume with $ 284 billion as part of its latest $ 900 billion coronovirus incentive package passed in December.
Like the first iteration of the program, the assistance will be in the form of excusable loans, but there are significant changes on issues such as eligibility for eligible applicants and types of excusable expenses. In addition, only certain types of community lenders will accept applications for the first few days after the program reopens. Here’s what relaunch is about.
Who can apply?
Businesses, some non-profit organizations, self-employed workers and independent contractors are eligible for these.
Existing PPP borrowers can apply for another loan. They must have 300 or fewer employees and may experience a 25% reduction in gross receipts during a quarter in 2020 compared to the same quarter in 2019. Returning borrowers must have used or used the full amount of the initial PPP loan, according to the Interim Program Rules of the Small Business Administration and the Treasury Department, for the “authorized purpose on or before the expected date” of the second loan.