{"id":8373,"date":"2021-01-12T18:42:09","date_gmt":"2021-01-12T23:42:09","guid":{"rendered":"https:\/\/www.grantwatch.com\/grantnews\/?p=8373"},"modified":"2021-06-25T13:16:29","modified_gmt":"2021-06-25T17:16:29","slug":"paycheck-protection-program-part-2-ppp-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.grantwatch.com\/grantnews\/paycheck-protection-program-part-2-ppp-what-you-need-to-know\/","title":{"rendered":"Paycheck Protection Program Part 2 (PPP): What You Need to Know"},"content":{"rendered":"\n

The Paycheck Protection Program (PPP) re-opened on Jan. 11, 2021 for new borrowers and certain existing PPP borrowers. This is a much-needed financial lifeline to small businesses that continue to suffer from the impacts of the coronavirus pandemic. According to the Treasury Department, this round of the PPP continues<\/em> to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021. Additionally, certain existing PPP borrowers may apply for a Second Draw PPP Loan.<\/p>\n\n\n\n

Applications to the Paycheck Protection Program will initially be limited to smaller, community-based lenders. This decision was made as a result of the widespread criticism that larger banks and companies with existing access to capital were favored during the first round of loans that went out last year. Some reports also stated that minority-owned businesses were the last to receive assistance. <\/p>\n\n\n\n

With the current PPP, the SBA pledges a more equitable process. It released new guidance on accessing capital specifically aimed at underrepresented business owners, including women, people of color, and veterans.<\/p>\n\n\n\n

SBA will continue to engage with all PPP lenders to maximize access to the PPP for all of America\u2019s eligible small businesses. To accomplish this, SBA continues to call upon its lending partners and asks that they redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities<\/strong>, allowing us to further expand economic opportunity. <\/p>

In particular, all PPP lenders are strongly encouraged to:
*<\/strong>Continue to engage in community outreach and communication through organizations, trade associations, and individuals that represent and serve underserved communities and minority, veteran, and women-owned businesses. <\/p>

SBA will continue to lead by example on best practices for this type of engagement; and *<\/strong>Continue to fully comply with all applicable Federal, State, local, and other statutory requirements related to fair lending.<\/p>USA Small Business Administration<\/cite><\/blockquote>\n\n\n\n

On Monday, Jan. 11, 2021, applications opened to smaller businesses that did not receive a PPP loan the first time around. Those that received one of the original loans may apply for a second PPP loan beginning on Wednesday, Jan. 13, 2021. They will, however, need to meet eligibility requirements. Larger companies will be able to access the program sometime after Jan. 13.<\/p>\n\n\n\n

The PPP has been extensively revised from its original form. Many business owners thought that the focus on payroll costs was restrictive. While job retention is still the goal, the new loans will come with more flexibility. <\/p>\n\n\n\n

\"PPP\"<\/figure><\/div>\n\n\n\n

The new program\u2019s details include:<\/h2>\n\n\n\n