The U.S. Small Business Administration (SBA) and Treasury issued guidance for the reconstituted Paycheck Protection Program (PPP), which takes effect on Monday, January 11th.
The guidance included two interim final rules.
- The 82-page IFR “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended” consolidates the rules for PPP forgivable loans for first-time borrowers and outlines changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260.
- The 42-page IFR “Business Loan Program Temporary Changes; Paycheck Protection Program Second Draw Loans” lays out the guidelines for new PPP loans to businesses that previously received a PPP loan.
In addition, the SBA released a three-page “Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns.” That guidance includes a commitment from the SBA to make at least the first two days of the PPP application window open exclusively to applications from community financial institutions that serve minority- and women-owned businesses.
The SBA and Treasury announced that the new PPP will re-open the week of January 11, 2021 with community financial institutions exclusively allowed to make first-draw PPP loans on starting Jan. 11th and second-draw PPP loans starting Jan. 13th. The PPP will open to all participating lenders at an unspecified date shortly thereafter and remain open through March 31st.
The Beaufort County Black Chamber of Commerce is here to help.
Call us at 843-986-1102 or email us to setup an appointment and we will help you file. Please email firstname.lastname@example.org
A recent Brookings Institute analysis found that on average, it took 31 days for small businesses with paid employees in majority Black ZIP codes to receive PPP loans, which is seven days longer than those in majority white communities, due to Black businesses lacking banking relationships.
For non-employer businesses, the loan delay between majority-Black and majority-white neighborhoods grew to nearly three weeks.
Many business owners, especially independent contractors and sole proprietors, did not know that they were
eligible to receive the first round of PPP.
Many others were unable to apply because they did not have the necessary documentation and they were intimidated
by the process.
Follow the link below for a complete section-by-section rollout of the new PPP legislation….and please don’t hesitate to contact us if you need any assistance in applying.