As of 1/5/21: Additional PPP Funding Information Coming

An additional $284.6 billion in PPP funding is available, including for borrowers who have previously received a PPP loan.  Below are some key points that are available at this time. However, more guidance is due to be released by the SBA within the next 10 days, so please watch for further updates. 

• The SBA is poised to re-open the PPP for first time recipients, with an expansion of eligible entities including 501(c)(6)s, destination marketing organizations (DMOs), housing cooperatives, newspapers, broadcasters, and radio stations. These new rules prohibit publicly traded companies from receiving PPP funds, as well as those entities receiving Shuttered Venue Operator Grants. The updated guidelines also clarify that a business must have been in operation on February 15, 2020.
• The program is slated to include a Second Draw of PPP funds for small businesses with 300 or fewer employees who have sustained a 25% drop in revenue during any quarter of 2020 when compared to the same quarter in 2019. A business must use, or have used, the full amount of their first PPP loan.
• The maximum loan amount is $2 million.
• Expands list of eligible expenses to include covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance; covered supplier costs; and covered worker protection expenditures (PPE).
• The covered period for all first draw loans is extended to March 31, 2021 and is retroactive to the start of the CARES Act programs. Borrowers may choose the end of their forgiveness covered period between 8 and 24 weeks after the loan origination.