New Loans Available to Small Businesses
Published on January 08, 2021
The U.S. Small Business Administration (SBA) announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11. Mayor Leirion Gaylor Baird encourages Lincoln small businesses to act quickly to access support.
“I’m thrilled that Lincoln businesses will have an opportunity to access additional PPP loans starting next week.” said Gaylor Baird. “Important improvements to the program include expanded eligibility to additional organizations, access to a second PPP loan for eligible businesses, and eligibility for loans for additional expenses. This is good news for Lincoln businesses and our local economy.”
PPP loans are low-interest loans designed for small businesses to keep their workers on the payroll. The Small Business Administration will forgive loans if all employee retention criteria are met and the funds are used for eligible purposes.
The SBA will accept PPP loan applications for the first two days only from community financial institutions. PPP loans will open to all participating lenders shortly thereafter. Overall, $284 billion dollars will be available through March 31, 2021.
Eligibility has been expanded to include membership organizations like housing cooperatives. Additional expenditures are also covered, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
Businesses that are eligible for a second PPP loan include those that have or will have used their previously allotted full amount, have no more than 300 employees, and can demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020.
For more information on SBA’s assistance to small businesses, visit https://www.sba.gov/article/2021/jan/08/sba-treasury-announce-ppp-re-opening-issue-new-guidance.