by Adam Sweet
This week, the government released updated guidance on the Paycheck Protection Program (PPP) (covering both the “first draw” program, and the recently enacted “second draw” program), including new interim rules governing the second draw loan program and a consolidated interim rule (with frequently asked questions) covering most facets of the first and second draw loan programs.
The government also plans to release an updated application form for second draw loans (SBA Form 2483-SD, not yet released). The government further announced the PPP will reopen the week of January 11 for new borrowers and “certain existing PPP borrowers.”
As part of this reopening, the government states, “initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11 and Second Draw PPP Loans on Wednesday, January 13,” with the PPP “open to all participating lenders shortly thereafter.”
Here is what you need to know about the new guidance and second draw loan program.
Eligibility for Second Draw PPP Loans
The new rules state an applicant is eligible for a second draw loan if it is a “a business concern, independent contractor, eligible self-employed individual, sole proprietor, nonprofit organization eligible for a First Draw PPP Loan, veterans organization, Tribal business concern, housing cooperative, small agricultural cooperative, eligible 501(c)(6) organization or destination marketing organization, or an eligible nonprofit news organization” meeting all of the following criteria:
Read the entire article at EideBailly: https://www.eidebailly.com/insights/articles/2021/1/ppp-second-draw-program-opens-week-of-january-11