PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

New PPP Guidance and Application Forms

By at 10 January, 2021, 12:31 pm

by Karen Kerrigan-

The U.S. Treasury and SBA released new PPP guidance and application forms, which can be found here. Guidance is provided on first and second PPP draws, as well as early capital access for minority, veteran, disadvantaged and women-owned businesses. This round authorizes up to $284 billion of PPP through March 31, 2021. As an FYI, $35 billion of the $284 billion is allocated to first-time borrowers.

The revised Lender Application Form and the Second Draw Lender Application Form were released late in the evening of January 8. The SBA is reopening PPP the week of January 11, 2021. Initially, only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.  The PPP will open to all participating lenders shortly thereafter.

The Journal of Accountancy provides a helpful update of the new application forms here.

According to SBA, 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.

The Journal of Accountancy has a helpful review of the new PPP changes and guidance here.

For a comprehensive list of links and summaries from the SBA, please visit SBE Council’s Small Business Coronavirus Resource page here.

Karen Kerrigan is president & CEO of the Small Business & Entrepreneurship Council. 

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