Congress recently reauthorized funding for the Paycheck Protection Program (PPP) through the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (Economic Aid Act). Though many guidelines are the same as when the program was first passed in March 2020, there are several important differences.
A key change is that businesses that have previously received a PPP loan might be eligible for a second one. The PPP is intended primarily to cover payroll costs. There are forgivable loans to help retain workers, maintain payroll, and cover other obligations.
Here are some other key updates:
- The program’s eligibility was expanded to include 501(c)(6)s, housing cooperatives, direct marketing operations and others.
- The PPP loan also now provides greater flexibility for seasonal employees.
- Borrowers can set their loan covered period to any length between eight and 24 weeks.
- Loans can cover additions expenses such as operations expenditures, property damages, supplier costs, and worker protection expenditures.
- Certain existing PPP borrowers can request to modify their First Draw PPP loan amount, and are now eligible to apply for a Second Draw PPP loan.
Contact your local bank credit union or other SBA certified lender to apply. The deadline is March 31, 2021.
For more information about the Paycheck Protection Program, other assistance available through the Economic Aid Act, and how the Florida SBDC Network can help you apply, please visit https://floridasbdc.org/disaster/cares-act/