Key PPP updates include:
o PPP borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks to best meet their business needs;
o PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures;
o The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
o The PPP provides greater flexibility for seasonal employees;
o Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount;
o 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:
o Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
o Has no more than 300 employees;
o 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 sba.gov/ppp or treasury.gov/cares. PPP loan information is also available at www.FirstIndependence.com.
