On December 21st, Congress approved a new COVID-19 stimulus bill which includes another round of PPP forgivable loans (called PPP2). PPP2 loans are available to both previous recipients and first time borrowers, and also for community groups. A total of $325 billion is available through March 31, 2021, and the application portal opens on Monday, January 11, 2021.
Previous Recipients
Additional loans are available up to $2 million each, for previous PPP recipients, provided they meet these 3 criteria:
SBA, in consultation with the U.S. Treasury Department, will open the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. When the PPP loan portal system opens, it will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
How To Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
If you wish to begin preparing your application, you can download the following PPP borrower application forms to see the information that will be requested from you when you apply with a lender:
Supplemental Materials