TRAVERSE CITY — The federal Paycheck Protection Program re-opened this week for new borrowers and certain existing PPP borrowers, according to the U.S. Small Business Administration and the U.S. Treasury Department.
Only community financial institutions were able to make First Draw PPP Loans beginning Monday, and will be able to begin Second Draw PPP Loans on Wednesday. The program will open to all participating lenders shortly thereafter, the SBA stated in a release.
Updated PPP guidance outlining program changes — intended to enhance the program’s effectiveness and accessibi- lity — was released on Jan. 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward 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.
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” Administrator Jovita Carranza said in a release.
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” U.S. Treasury Secretary Steven Mnuchin said in the release. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19.”
The first round of PPP loans delivered nearly $350 million to 3,916 partnerships, sole proprietorships, companies, corporations and non-profits in Antrim, Benzie, Grand Traverse, Kalkaska and Leelanau counties. Many of the loans potentially may be forgiven, effectively converting them into grants.