The Small Business Administration, along with the U.S. Treasury Department, announced this week that the Paycheck Protection Program (PPP) re-opened Monday January 11th for new borrowers and some existing PPP borrowers.
Sara Beebe at the Small Business Development Center, located at 448 W. Williams, is set up and ready to assist local small business owners with the application process. She said the staff at CEDA/ Fallon SBDC has completed extensive training and research on the PPP loans and continue to receive information that can help them assist all small business owners to apply and obtain PPP funds.
“We are working directly with the SBA to get all questions that businesses may have answered,” she said. “We are also getting updates from our local lenders as to when they are accepting applications. This round has more opportunities for forgiveness on the loan and we want many businesses to apply so they can get the relief they need.”
Joseph Amato, SBA district director, provided information to business owners across the state on Tuesday during a webinar, giving updated PPP guidance outlining program changes that will enhance effectiveness and accessibility. “Here we are DeJa’Vu all over again,” he said. “It’s sad we have to have the PPP second draw again in some ways, but it is something the SBA and the federal government has seen as being more than a necessary stimulus source.”
This round of PPP funding is part of the $325 billion Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act intended to help business owners struggling to recover from the impacts of the COVID-19 pandemic.
To promote access to capital, only community financial institutions were able to make First Draw PPP Loans on Monday, and Second Draw PPP Loans began on Wednesday, January 13th. The PPP will open to all participating lenders by the end of the week.
According to a media release from the SBA, this round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing funding that will be used for job retention and certain other expenses through March 31, 2021. It also allows certain existing PPP borrowers to apply for a Second Draw PPP Loan.
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said Administrator Jovita Carranza. She said the new round of funding 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 ensure their path to recovery.
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”
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 new guidance also includes information and guidance on accessing capital for minority, underserved, Veteran, and women-owned businesses.
- Beebe said Greater Nevada Credit Union began accepting PPP First and Second Draw applications on Tuesday and does not require applicants to be clients in order to apply.
For more information on SBA assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares.
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