Weekly Policy Update: Small Business Administration Releases New Details for Paycheck Protection Program
By: Colorado BioScience Association Date: 01/08/2021
The Small Business Administration (SBA) released new guidance this week for the next round of Paycheck Protection Program (PPP) loans. Congress authorized $284.45 billion to go towards PPP loans as part of the COVID relief package they passed at the end of 2020.
In addition to new guidance, the SBA also confirmed that the program will officially reopen on January 11, but the agency will only be accepting loans from small businesses that have yet to receive a PPP loan and will only be accepting applications from lenders that are considered “community financial institutions.” (The SBA defines community financial institutions as Community Development Financial Institutions, minority deposit institutions, certified development companies, and microloan intermediaries.)
On January 13, small businesses can start applying for a second PPP loan, but only with community financial institutions.
The program will open up to all participating lenders “shortly thereafter,” and will run through March 31, 2021.
The COVID relief package also included a range of other small business provisions, including new funding and changes to the Economic Injury Disaster Loan Advance program and tax relief. You can read more about the small business provisions here.
For more information and resources for small businesses, visit the Colorado Office of Economic Development & International Trade Resource Center.