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PPP Funding Reopening Tips

Posted on: January 26, 2021 - 9:27am

The SBA has reopened the Paycheck Protection Program loan portal to all participating PPP lenders. The Paycheck Protection Program provides loans to help businesses keep their workforce employed during the COVID-19 crisis. As of January 19, 2021, the SBA is accepting applications from all participating lenders. Learn about who qualifies for First and Second draw loans, what the terms are, and how to apply. The five top tips to know are:

  1. Small businesses can begin to submit applications - borrowers can apply for a First Draw PPP loan until March 31, 2021. Lender Match can help businesses find a participating lender. 
  2. If a small business didn't access a PPP loan prior to 12/27/2020, they may be eligible for a First Draw PPP loan. See First Draw PPP Loan Overview for more details. 
  3. SBA will ensure increased access to capital. The Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (Economic Aid Act), includes set asides for new and smaller borrowers, for borrowers in low and moderate-income communities and for community and small lenders. Guidance can be found here. 
  4. Second Draw PPP Loans are available - click here for Second Draw Loan overview. Translations are available in Spanish and 16 other languages. 
  5. There are a number of free business resources to assist in the application process as well as provide general assistance during the COVID-19 crisis and beyond. For a complete list see the CT Small Business Administration Resource Guide.

First Draw PPP Loan eligibility now includes additional types of entities and covered eligible expenses have been expanded. Additionally, organizations may qualify for a Second Draw PPP Loan if they can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.  Learn more about eligibility and covered expenses here.