PPP reopening for first draw borrowers Jan. 11; second draw Jan. 13

Jan 08, 2021
Jan 08, 2021
0 min. read
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Accounting methods Federal tax COVID-19

From the U.S. Department of the Treasury. Full press release can be found here.

“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.”

In addition, the SBA has published top-line overviews of each program:

Top-line-Overview-of-First-Draw-PPP.pdf (treasury.gov)

Top-line-Overview-of-Second-Draw-PPP.pdf (treasury.gov)

RSM alerts on changes to the program are below:

A business guide to the December coronavirus relief package

SBA releases guidance on PPP continued access program 

SBA releases guidance on PPP second draw loans 

PPP eligibility expanded to certain section 501(c)(6) organizations

RSM contributors