SBA and Treasury Announce PPP Re-Opening; Issue New Guidance

Posted on by Lewis

I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced this past Friday (January 8) that the Paycheck Protection Program (PPP) will re-open tomorrow (January 11) for both new borrowers and certain existing PPP borrowers. In an effort to promote access to capital for smaller businesses, 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.  The PPP will then be open to all participating lenders shortly thereafter. (see timeline below).


The 2nd round of the PPP authorizes up to $284 billion, aimed at job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

Key PPP updates include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

We helped a multitude of businesses qualify for, and obtain a PPP Loan during the first round of funding throughout 2020.  Whether you’d like to attempt to qualify for a first round “draw”, or need assistance with documenting the qualifications for a second round “draw”, we are here to assist you.  Feel free to contact us with any questions you may have about the PPP. https://brtaxaccountant.com/