Paycheck Protection Program begins to re-open
WASHINGTON – The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, re-opened the Paycheck Protection Program loan portal Monday.
SBA is addressing potential access to capital barriers by initially granting PPP access exclusively to community financial institutions. On Jan. 13, participating institutions may begin submitting application information to SBA for Second Draw PPP loans. A Second Draw PPP loan is for certain eligible borrowers that previously received PPP loans, generally have 300 employees or less and have suffered a 25% reduction in gross receipts. A few days later, additional lenders will be able to submit First and Second draw PPP loan applications.
U.S. Sen. Kevin Cramer, R-ND, a Senate Banking Committee member, noted the targeted COVID-19 relief package included in the year-end spending bill that Congress passed in December contained $284 billion for the PPP.
“This round includes commonsense fixes to the program, like deductibility for expenses, simplified forgiveness and an expansion to ensure faith-based organizations are eligible. North Dakota’s small businesses should take full advantage of it,” Cramer said.
Interested borrowers should visit the SBA website and visit with their lenders.