SBA Is Reopening the Paycheck Protection Program (PPP) for First Draw Loans the Week of January 11, 2021. 

• To promote access for smaller lenders and their customers, SBA will initially only accept loan applications from community financial institutions starting on January 11, 2021. The PPP will open to all participating lenders shortly thereafter.
  • Funds are expected to go quickly, so take the time now to gather your documents and choose your lender so you can be at the front of the line

PPP Loans are Available to First-Time Borrowers from the Following Groups:

• Eligible small entities, that together with their affiliates that have 500 or fewer employees. 
• Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those industries can also apply.
• Including: Sole proprietors, independent contractors, eligible self-employed individuals, and not-for-profits, including churches.

Full Forgiveness Terms First Draw:

• PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: 
• Employee and compensation levels are maintained
• The loan proceeds are spent on payroll costs and other eligible expenses
• At least 60% of the proceeds are spent on payroll costs.

Reapplying and Loan Increases:

• Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.

Expands Use of PPP Funds to Include New Expenses:

• Makes personal protective equipment, operational expenditures, and supplier costs eligible for forgiveness. For example: expenses like cloud computing and computer software are now eligible for forgiveness.
• Can pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.  

Simplifies Forgiveness for PPP Loans under $150,000:

• Requires borrowers with loans up to $150,000 to submit a one-page certification with only essential information to their lenders and preserve documentation in case the SBA audits the loan.

Access for All:

• At least $15 billion is being set aside for First Draw PPP loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods.

• Adds another $20 billion for EIDL Advance Grants
• Targeted EIDL Advance for Small Business Continuity, Adaptation, and Resiliency.
  • Provides additional targeted funding for eligible entities located in low-income communities through the EIDL Advance program from Section 1110 of the CARES Act.
  • Makes entities in low-income communities that received an EIDL Advance under Section 1110 of the CARES Act eligible to receive an amount equal to the difference of what the entity received under the CARES Act and $10,000.
  • Provides $10,000 grants to eligible applicants in low-income communities that did not secure grants because funding had run out.

Like Senator Warner’s Save our Stages Act, the bill creates a $15 billion grant program within SBA to offer grants to eligible live venue operators, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, and talent representatives.