Paycheck Protection Program and other
CARES Act Information
The SBA is now accepting Paycheck Protection Program applications for First Draw PPP Loans and Second Draw PPP Loans. This round of the PPP will run through March 31, 2020.
For those proceeding with PPP Loan Forgiveness, below are links to the forgiveness application forms, as well as instructions:
Update January 19, 2021:
SBA, in consultation with the Treasury Department, has recently released additional PPP guidance and resources:
Update January 17, 2021:
SBA, in consultation with the Treasury Department, has recently released additional PPP guidance and resources:
As part of the Second Draw Borrower application, Applicants must enter the SBA loan number of the First Draw PPP loan (i.e. the loan that was originated in 2020). SBA loan numbers have the following format to help borrowers identify the SBA loan number of their first PPP loan: XXXXXXXX-XX (i.e. eight numbers followed by a dash and then two more numbers). PPP lenders should make SBA loan numbers easily accessible to their borrowers.
Update January 13, 2021:
SBA, in consultation with the Treasury Department, has recently released additional guidance:
SBA will reopen the Paycheck Protection Program loan portal to small lenders ($1B or less in assets) for First and Second Draw applications on January 15, 2021 at 9:00 a.m. ET. The portal will open to all participating PPP lenders on Tuesday, January 19, 2021 for First and Second Draw loan applications.
Update January 8, 2021:
SBA, in consultation with the Treasury Department, has recently released additional PPP forms and guidance:
Updated First Draw Forms
Second Draw Forms
Guidance & Resources
Update, January 8, 2021:
The SBA and Treasury announced today that the Paycheck Protection Program 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. This round of the PPP authorizes 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.
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, direct 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.
Update January 7, 2021:SBA has issued several documents on the next round of the Paycheck Protection Program authorized by the recent COVID-19 stimulus package. The new documents include:--An interim final rule on the PPP as amended by the Economic Aid Act--An interim final rule on second-draw PPP loans--Guidance on accessing capital for minority-, underserved-, veteran-, and women-owned businesses.This stimulus package will provide support for a new round of PPP lending and provisions simplifying PPP loan forgiveness.
Update December 9, 2020:
SBA and Treasury have released updated guidance:
View all Paycheck Protection Program updates, information, and relevant NASBP Blogs here.