PPP Reopens for Select Lenders and Borrowers
The Paycheck Protection Program (PPP) reopened Monday, Jan. 11 for select lenders and borrowers.
The U.S. Small Business Administration (SBA) and Treasury stated that initially only community financial institutions that serve minority- and women-owned businesses will be able to make loans. These community financial institutions can begin making loans to first-time PPP borrowers on Monday and second-time PPP borrowers on Wednesday.
The SBA and Treasury released borrower loan application forms for the rebooted PPP: Form 2483 – Paycheck Protection Program Borrower Application Form and Form 2483-SD – PPP Second Draw Borrower Application Form.
Form 2483 is updated from previous iterations that started with the original PPP. Form 2483-SD is a new form for qualified borrowers to seek a second draw of a forgivable loan.
The SBA and Treasury also published top-line summaries of the first draw and second draw PPP loans as well as two procedural notices:
- Top-Line Overview of First Draw PPP Loans
- Top-Line Overview of Second Draw PPP Loans
- Procedural Notice – Modifications to SBA Forms 3506, 3507 and 750 CA (PPP only)
- Procedural Notice - SBA Procedural Notice on Repeal of EIDL Advance Deduction Requirement
The SBA and Treasury also recently issued guidance for the reconstituted PPP:
- The 82-page IFR “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended” consolidates the rules for PPP forgivable loans for first-time borrowers and outlines changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260.
- The 42-page IFR “Business Loan Program Temporary Changes; Paycheck Protection Program Second Draw Loans” lays out guidelines for new PPP loans to businesses that previously received a loan.
- A three-page document called “Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns,” which includes a commitment from the SBA to make at least the first two days of the PPP application window open exclusively to applications from community financial institutions.
The closing date for the new PPP is March 31.
For more information, visit tscpa.com/covid19.