SBA and Treasury announce reopening of PPPs and issue new guidelines

The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, announced that the Paycheck Protection Program (PPP) will reopen the week of January 11 for new borrowers and some existing PPP borrowers . To promote access to capital, only community financial institutions will initially be able to grant first-draw PPP loans on Monday 11 January and second-draw PPP loans on Wednesday 13 January. The PPP will be open to all participating lenders shortly thereafter. An update to the PPP guidelines outlining changes to the program to improve its efficiency and accessibility was released on January 6, in accordance with the Law on Economic Assistance to Small Businesses, Nonprofits and Distressed Sites.

This P3 cycle continues to prioritize millions of Americans employed by small businesses by authorizing up to $ 284 billion for job maintenance and certain other spending until March 31, 2021, and allowing some existing PPP borrowers to apply for a second draw PPP loan.

“The historically successful Paycheck Protection Program has served as an economic lifeline for millions of small businesses and their employees when they need it most,” said Jovita Carranza, Administrator of the SBA. “Today’s advice builds on the success of the program and adapts to the changing needs of small business owners by providing them with targeted assistance and a simpler forgiveness process to secure their path to recovery.”

“The Paycheque Protection Program has successfully issued 5.2 million loans worth $ 525 billion to small businesses in the United States, supporting more than 51 million jobs,” said the Secretary of the Treasury Steven T. Mnuchin. “These updated guidelines improve targeted PPP assistance for small businesses most affected by COVID-19. We are committed to rapidly implementing this cycle of PPP to continue to support American small businesses and their workers. “

The main PPP updates include:

  • PPP borrowers can set the period covered by their PPP loan between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operating expenses, property damage costs, supplier costs, and worker protection expenses;
  • Program eligibility is expanded to include 501 (c) (6) s, housing co-ops, destination marketing organizations, among other types of organizations;
  • The PPP offers greater flexibility to seasonal employees;
  • Some existing PPP borrowers may request to change the amount of their first-draw PPP loan; and
  • Some 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:

  • Has already received a first draw PPP loan and will use or have used the full amount only for authorized purposes;
  • Has no more than 300 employees; and
  • Can demonstrate a reduction of at least 25% in gross revenue between comparable quarters in 2019 and 2020.

New published guidelines include:

For more information on SBA Small Business Assistance, visit or

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