New year, new PPP loan information Email
Written by Colorado Green NOW   
Tuesday, January 12, 2021 04:00 AM

Colorado Green Now

This week, the US Small Business Association (SBA) re-opened the Paycheck Protection Program (PPP) to new applications and some existing borrowers, allowing only community financial institutions to make the initial loans. The first round of First Draw PPP loan applications opened Monday, January 11. Second Draw PPP loan applications opened Wednesday, January 13. All SBA lenders will be allowed to make PPP loans some time after those dates.

With goals to increase access to small businesses and simplify debt forgiveness, the PPP program has been updated and new guidance has been issued. 

According to SBA, key PPP updates include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain 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:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The new guidance released includes:

Read more in this issue of Colorado Green NOW:
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DOL clarifies independent contractor status test with final rule
VIDEO: Tips for keeping your remote employees happy and productive

ProGreen Experience announces 2021 sessions