With Congress approving up to $284 billion to loans

KEY POINTS

  • The U.S. Small Business Administration will be reopening its forgivable loan program for second rounds as well as new borrowers for specific existing borrowers.
  • Initially, only community financial institutions will be able to provide PPP loans on Monday, Jan. 11, and second round PPP loans on Wednesday, Jan. 13. The system is going to reopen to other after.
  • Congress authorized up to $284 billion to the loans as part of its Covid relief act near the conclusion of 2020.

The Paycheck Protection Program is going to reopen on Jan. 11, delivering forgivable loans to businesses that are small and allowing certain cash strapped firms to borrow a second time, based on the U.S. Business Administration.

Congress authorized up to $284 billion toward the small business loan program during the sweeping Covid relief act that went into effect near the end of 2020.

The measure even included more aid for small businesses in the form of tax deductibility for expenses covered by PPP, as well as tax credits for firms which kept the workers of theirs on payroll and simplified forgiveness for loans below $150,000.

This time, the SBA and Treasury Department have staggered the reopening.

Here is what to find out about the $284 billion in business aid that will soon be available This means initially only group financial institutions – it includes banks as well as credit unions which lend in low income communities — will have the opportunity to initiate PPP loan programs on Jan. 11.

They are going to offer second PPP loans to qualifying businesses beginning on Jan. 13, the SBA said.

Firms taking a second infusion of loan proceeds must meet certain qualifications, including having no more than 300 employees and experiencing at least a 25 % reduction in gross receipts in a quarter between 2019 as well as 2020.

The system will reopen to other participating lenders shortly thereafter, according to the agency.

Wells Fargo & Co. said late week it has agreed to sell its private  wells fargo student loans portfolio to investors, with Firstmark, a division of Nelnet Inc. assuming responsibility for servicing the portfolio upon the sale. 

“Today’s instruction builds on the success of the program and adapts to the changing requirements of entrepreneurs that are small by giving targeted relief and a simpler forgiveness procedure to make sure their path to recovery,” stated Jovita Carranza, administrator of the SBA.

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