Here’s What You Need to Know About the Re-Opening of the PPP


There’s more good news for small business as the U.S. Small Business Administration and the Treasury Department have announced that the Paycheck Protection Program (PPP) will reopen on January 11. New borrowers and certain previous PPP borrowers will be eligible for loans.

To ensure capital is fairly distributed, community and financial institutions will be able to make First Draw PPP Loans on Jan. 11 and Second Draw PPP Loans on January 13. The loan will open to all participating lenders shortly after.

The re-opening of the PPP loan comes with additional guidance outlines created to increase effectiveness and accessibility. New stipulations were released January 6 in accordance with the Economic Aid to Hard Hit Small Businesses, Non-Profits and Venues Act.

The latest round of the PPP authorized up to $284 billion to be granted to small businesses going towards job retention and other expenses incurred through March 31, 2021. It also allows certain PPP borrowers to apply for a Second Draw Loan. To qualify, businesses must demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The PPP has been revived as part of the $900 billion COVID relief bill signed into law late last year. The original bill provided $525 billion over a five-month period before it stopped accepting applications in August. The new PPP makes an additional $284.5 billion available with $35 billion designated towards first time loans and $15 billion going towards community and financial institutions.

PPP guidelines are a little different this time around. Here’s what you need to know:

  • Borrowers can set their loan’s coverage period to be any length between 8 and 24 weeks in accordance with their business needs.
  • Loans can cover operation expenses, property damage costs, supply costs and worker protection expenses
  • The program has been expanded to cover 501© (6)s, housing cooperatives, direct marketing organizations and other types of organizations
  • The revived plan provides increased flexibility and clearer definitions for seasonal employees
  • Certain existing borrowers may modify their First Draw PPP Loan amount
  • Certain existing PPP borrowers will be eligible for a Second Draw Loan

Here are the guidelines for eligibility on a Second Draw Loan:

  • The business must have previously received a First Draw PPP Loan and used the full amount for authorized uses
  • The business must have 300 employees or less
  • The business must demonstrate gross receipts for 2020 prove at least a 25% reduction as compared to the same quarters in 2019. Tax forms can be presented as evidence of annual income.
For more information on the PPP loan and how you can qualify, visit or