SBA ANNOUNCES PAYCHECK PROTECTION PROGRAM TO REOPEN WEEK OF JANUARY 11

The U.S. Small Business Administration (SBA) today announced that the Paycheck Protection Program (PPP) will reopen the week of Jan. 11 for new borrowers and certain existing borrowers. This applies to both first and second draw loans. For companies interested in applying for a new PPP loan, we strongly urge that you promptly consult with your financial institution and tax advisor to ensure you have the latest information as elements are still evolving, and are prepared to act as the loan funds become available.

According to the SBA's announcement, "The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.

This round of the PPP continues 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, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan."