Thanks to the recent COVID-19 relief bill, which passed Congress with my support, $284 billion in Paycheck Protection Program (PPP) loans will be reopened and available to struggling small businesses across the country this week. 

The PPP program has been extended until March 31, 2021, and creates a process for small businesses or non-profits to can receive a “Second Draw PPP Loan” of up to $2 million if the entity (i) has fewer than 300 employees and (ii) can demonstrate a reduction in gross receipts of 25% when compared to a corresponding financial quarter of 2019; (iii) creating a simplified PPP loan forgiveness application for loans under $150,000. Small businesses that never previously received a PPP loan can also apply.

The Small Business Administration and the Treasury Department announced last Friday that Paycheck Protection Program loans will be available to First Draw PPP loan applications starting today, January 11, and second draw PPP loan applications on January 13 from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries. The program will be open to all participating lenders shortly thereafter.  

For more information on the Paycheck Protection Program and other resources for small businesses, visit the SBA website HERE.

 
Representative French Hill