Paycheck Protection Program Re-Opening. Top 5 Things Small Businesses Should Know
**NEWS FROM THE U.S. SMALL BUSINESS ADMINISTRATION**
CONNECTICUT – The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, re-opened the Paycheck Protection Program (PPP) on January 11, 2021 for new borrowers and certain existing PPP borrowers. This round of the PPP continues to prioritize millions of Americans employed by small businesses authorizing up to $284 billion in forgivable loans for job retention and coverage of eligible expenses.
- Small Businesses can begin to submit applications.
The SBA is currently accepting Paycheck Protection Program (PPP) loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets. The program will open to all lenders on Tuesday, January 19, 2021. Borrowers can apply for a First Draw PPP Loan until March 31, 2021. Lender Match can help businesses find a participating lender.
- 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.
First Draw PPP Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. See First Draw PPP Loan Overview for more details. Translations available in Spanish and 16 other languages.
- SBA will ensure increased access to capital.
Building on the success of the first round of PPP, SBA is continuing to address potential barriers to access to capital for minority, underserved, veteran and women-owned business concerns. 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 smaller lenders (Guidance).
4. Second Draw PPP Loans are available
SecSecond Draw PPP Loans are available for eligible borrowers who previously received a PPP loan, have 300 employees or less, and have suffered a 25% reduction in gross receipts. Borrowers can apply for a Second Draw PPP Loan until March 31, 2021. See for more details. Translations available in Spanish and 16 other languages. Second Draw PPP Loan Overview for more details. Translations available in Spanish and 16 other languages.
5. FREE Business Resources
Extensive business assistance is available through Connecticut SBA’s traditional and non-traditional resource partners. Including financial reviews, business planning, marketing and other tools and advice to assist small businesses as they navigate available economic relief funding options. For a complete list see Connecticut’s SBA Resource Guide.
“We are committed to implementing this round of PPP quickly to continue supporting Connecticut small businesses and their workers,’ said SBA Connecticut District Director, Catherine Marx. ‘In 2020 Connecticut businesses received 65,000 forgivable loans totaling approximately $6.7 billion dollars. However, we know that the need for additional support still exists to help Connecticut businesses remain resilient”.
Please join us on January 19, at 12pm ET for an Overview on the Basics of the new Paycheck Protection Program (PPP). To register for this event and others visit our website http://www.sba.gov/ct.
Stay up to date by following SBA on Twitter @SBA_Connecticut and subscribe to SBA’s e-newsletter on https://www.sba.gov/about-sba/sba-newsroom.
###
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.